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State Whether the Following Statements is True Or False : - Book Keeping and Accountancy

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Question

State whether the following statements is true or false :

Profit on revaluation account is transferred to continuing partners’ capital account only.

Options

  • True

  • False

MCQ
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Solution

False

Explanation:
 Revaluation Profit is credited to All Partners’ Capital Accounts (including the retiring partners) in their old profit sharing ratio.

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Chapter 4: Reconstitution of Partnership (Retirement of Partnership) - Exercise 4 [Page 127]

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Micheal Vaz Book Keeping and Accountancy [English] 12 Standard HSC Maharashtra State Board
Chapter 4 Reconstitution of Partnership (Retirement of Partnership)
Exercise 4 | Q 6 | Page 127
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