Question

at time of reconstitution of a partnership firm if a partner decides to retain assets and liabilities at their existing values and not at the revalued amounts , how will they record the adjustment in such a situation
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Answer 1

Answer:

At the time of reconstitution of a partnership firm, if partners decide to retain assetsand liabilities at their existing values and not at the revalued amounts, the adjustment is made through a single adjusting entry through Capital Accounts or Current Accounts by debiting the gaining partner and crediting the