Question

State the ‘true’ statement:

पर्याय

• Profit and Loss Adjustment A/c is prepared for revaluated of assets and liabilities on the admission of a partner.

• The new partner is liable for the past losses of the firm.

• In case the new partner is unable to bring in cash for goodwill, Goodwill Account may be raised in the firm’s books as per AS-26.

• When a partner is admitted, there is the dissolution of the firm.

Answer 1

Profit and Loss Adjustment A/c is prepared for revaluated of assets and liabilities on the admission of a partner.