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Adjustments in Partner's Capital Accounts

Profit or los...

Question

Profit or loss on revaluation of assets and liabilities is transferred to __________.

A

capital a/c of a new partner

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B

capital a/c of all partner

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C

capital a/c of old partner

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D

capital a/c of senior partner

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Solution

The correct option is D capital a/c of old partner
Due to the changes in revaluation account cause of profit and loss of assets and liabilities is transferred to the partners capital a/c of old partners .

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Similar questions

Q. Consider the following statements :
1. At the time of admission of new partner undistributed profit or losses are distributed to all partners in new ratio.
2. Profit or loss on revaluation of assets and liabilities is transferred to old partner's capital account in old profit sharing ratio.
3. Goods brought in by incoming partner in cash for joining in a partnership firm is taken away by the old partner's in their new profit-sharing ratio.
Which of the above statement/s is/are true ?

Profit/Loss on Revaluation of Assets & Liabilities on the retirement of a partner is shared by the partners in their:

Q. Profit/Loss on Revaluation of Assets & Liabilities on the retirement of a partner is shared by the partners in their ________.

Q. K and A are partners in a firm. They share profits and losses in the ratio of

4 : 1

. They decide to dissolve the firm K Capital - Rs

1, 60, 000

, A Capital - Rs

1, 00, 000

, Total assets - Rs

3, 95, 000

, Total liabilities - Rs

1, 35, 000

. On dissolution assets realized Rs

4, 25, 000

& liabilities settled at Rs

1, 10, 000

. Net profit or loss on realization = ?

Q. Profit on revaluation of assets and liabilities at the time of retirement of a partner will be credited to __________________.

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