Question

If any asset is taken over by partner froth the firm ________ account will be debited. (Fill in the blank by choosing correct option)
a) capital
b) revaluation
c) asset
d) Profit and Loss Adjustment

Answer 1

Option A
hope it helps you

Answer 2

Answer:

a) capital

Explanation:

If any asset is taken over by partner froth the firm's capital account will be debited. (Fill in the blank by choosing correct option)

If partners take over the assets of the company, they are debited to their Capital Accounts at the price decided upon as payment against their capital. If the company's liability is assumed by a partner, then it is credited to their capital accounts. Furthermore, in their profit-sharing ratio, we also transfer undistributed profits / losses, reserves and profit / loss realization to capital accounts.