Kamal and vimal were partners in a firm sharing profits in the ratio of 3:2. Ghosh...

 

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Kamal and vimal were partners in a firm sharing profits in the ratio of 3:2. Ghosh was admitted as a new partner forth share in the profits. On Ghosh's admission the Balance Sheet of the firm showed a credit balance of Rs10,000 in its Profit and Loss Account which was debited by the accountant of the accounts of kamal and Vimal. Did the accountant give correct treatment to the balance of Profit and Loss Account? If 'yes' give the reason and i 'not' give the correct treatment. Kamal and vimal were partners in a firm sharing profits in the ratio of 3:2. Ghosh was admitted as a new partner forth share in the profits. On Ghosh's admission the Balance Sheet of the firm showed a credit balance of Rs10,000 in its Profit and Loss Account which was debited by the accountant of the accounts of kamal and Vimal. Did the accountant give correct treatment to the balance of Profit and Loss Account? If 'yes' give the reason and i 'not' give the correct treatment.

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At the time of admission of a partner the balance of accumulated profits and losses i... View the full answer