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Question
If any asset is taken over by partner from the firm ______ account will be debited.
Options
Capital
Revaluation
Asset
Profit and Loss Adjustment
Balance Sheet
Solution
If any asset is taken over by partner from the firm capital account will be debited.
Explanation:
If any asset is taken over by a partner from the firm, then his/her Capital Account is debited. The capital account of a partner has a credit balance, which, on taking over an asset, gets reduced to the extent of the value of the asset so taken over.
RELATED QUESTIONS
Select the most appropriate answer from the alternative given below and rewrite the sentence.
Excess of proportionate capital over actual capital represents _________________.
State 'True' or 'False'
A new partner is admitted in the firm for getting additional capital and skill.
Objective type questions.
Select appropriate alternatives from those given below and rewrite the sentences.
Excess of proportionate capital over actual capital represents.......................
