On the admission of a partner, increase in the value of asset is debited to:
This question was previously asked in
Shift 16/06/2023 3:30 PM - 6:30 PM
A
Profit and Loss adjustment A/c
B
Asset A/c
C
Old Partners Capital A/c
D
Profit and Loss Account
Correct Answer
Asset A/c
Detailed Explanation
On the admission of a partner, the increase in the value of assets is typically debited to the "Asset Account."
This adjustment reflects the revaluation of assets to their current market or fair values.
Option 2, "Asset A/c," is the correct answer.
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