When a new partner is admitted, the increase in the value of the assets is debited to which account?
- AAssets account
- BProfit and Loss Adjustment account
- COld partner's capital account
- DProfit and Loss account
Solution & Step-by-step Explanation
The entry to record an increase in the value of an asset on revaluation is:
\quad \text{To Revaluation A/c (or Profit & Loss Adjustment A/c)}
Thus, the entry debits the specific Assets Account.
\quad \text{To Revaluation A/c (or Profit & Loss Adjustment A/c)}
Thus, the entry debits the specific Assets Account.