Question:
When a partner brings capital at the time of admission, it is credited to:
When a partner brings capital at the time of admission, it is credited to:
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Capital introduced is always credited to Capital A/c. Revaluation A/c deals with asset-liability adjustments.
Updated On: Jul 4, 2025
- Partner’s Capital Account
- Partner’s Drawing Account
- Partner’s Current Account
- Revaluation Account
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The Correct Option is A
Solution and Explanation
Capital introduced by a partner is always credited to their Capital Account. This increases their stake and forms part of the firm's liability towards that partner.
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Top Questions on Admission of a Partner
Aryan and Adya were partners in a firm sharing profits and losses in the ratio of 3 : 1. Their Balance Sheet on 31st March, 2024 was as follows :
Balance Sheet (Before Dev's Admission)
Liabilities Amount (₹) Assets Amount (₹) Capital: Aryan 3,20,000 Machinery 3,90,000 Capital: Adya 2,40,000 Furniture 80,000 Workmen’s Compensation Reserve 20,000 Debtors 90,000 Bank Loan 60,000 Less: Provision for Doubtful Debts (1,000) Creditors 48,000 Net Debtors 89,000 Stock 77,000 Cash 32,000 Profit and Loss A/c 20,000 Total ₹6,88,000 Total ₹6,88,000 Note:
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