On admission of a partner, which of the following items of 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 on fluctuating capital accounts method:
A. Deferred revenue expenditure
B. Profit and loss account (debit balance)
C. Profit and loss account (credit balance)
D. Balance in drawing account of partners
Answer:C
On admission of a partner, which of the following items of 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 on fluctuating capital accounts method:
A. Deferred revenue expenditure B. Profit and loss account (debit balance) C. Profit and loss account (credit balance) D. Balance in drawing account of partners