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  3. 12th Class
  4. Accountancy
  5. Admission of a Partner

12th Class Accountancy Admission of a Partner Question Bank MCQs - Reconstitution Of a Partnership Firm : Admission of a Partner

  • question_answer
    X and Y are sharing profits in the ratio of 4:1. They admit Z as a new partner for 1/3rd share in profits. New ratio of all the partners will be 1:1:1. At the time of admission of Z, Balance Sheet shows a Balance of General Reserve Rs. 30,000. Partners have decided not to distribute the General Reserve. What will be the impact on Y's Capital Account?

    A) No impact because they will not distribute Reserve

    B) 6,000 Credit to his capital account

    C) 10,000 Credit to his capital account

    D) 4,000 Debit to his capital account

    Correct Answer: D

    Solution :

    4,000 Debit to his capital account


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