Q1457
Which one of the following statements about the admission of a new partner to a firm is true:
A.
In case memorandum account is opened, the assets and liabilities appear in the new Balance Sheet at their revised values
B.
In case the newly admitted partner pays cash for his share of goodwill, it will be credited to old partner's capital accounts in their sacrificing ratio
AnswerC.
All accumulated profits and reserves are to be transferred to the profit and loss adjustment account on admission of a new partner
D.
When goodwill account is appearing in the books at a proper value, the new partner has to pay proportionate amount by way of good will to the old partners
Answer: Option B
Solution
Answer: Option B
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