Question

On admission of a partner, which of the following items the Balance Sheet is transferred to the credit of Capital Accounts of old partners in the old Profit-sharing Ratio, if Capital Accounts are maintained following Fluctuating Capital Accounts Method *
Deferred Revenue Expenditure;
Profit and Loss Account (Debit Balance);
Profit and Loss Account (Credit Balance);
Balance in Drawings Account of partners.​

Answer 1

Answer:

profit and loss account (credit balance)

Explanation:

because deferred revenue expenditure is like an advertisement suspense and deferred revenue expenditure is written off at the time of admission of a partner by debting old partners capital or current account in their old profit sharing ratio

profit and loss account (debit balance) is also transferred to the debit side of old partners capital or current account because profit and loss debit balance is loss.

balance of drawing account is debiting to partner's capital account because drawings means that partners had already withdrawn that balance from firm so thatwhy balance debited to partner's capital account

Answer 2

Explanation:

Profit and Loss Account (Credit Balance)