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Question
State the ‘true’ statement:
Options
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.
MCQ
Solution
Profit and Loss Adjustment A/c is prepared for revaluated of assets and liabilities on the admission of a partner.
shaalaa.com
Accounting for Revaluation of Assets and Reassessment of Liabilities
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