Business Studies, asked by skharshitha4136, 5 months ago

Bills payable of rs 15000 have been omitted from books what will be the entry in admission of partnership

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Answered by shafaqzamindar
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Answer:

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Answered by tiwariakdi
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This entry will increase the current liability of the business and simultaneously increase the capital of the new partner.

When bills payable of Rs. 15,000 have been omitted from the books, the entry to rectify this error at the time of admission of a new partner will be:

Dr. Bills Payable (current liability) - Rs. 15,000

Cr. Capital (new partner's capital) - Rs. 15,000

This entry will increase the current liability of the business and simultaneously increase the capital of the new partner.

The Partnership Act of 1932 states that, unless otherwise agreed upon, a new partner may only be allowed into the firm with the permission of all of the current partners.

The partnership firm is reformed upon the admission of a new partner, and a new contract is made to conduct the firm's activities.

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