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JAMB Principles of Accounts 2011 Question 42

Question 42

Partnership Admission, Retirement and Dissolution

Which of the following can be used on admission of a new partnership?

  1. A.Revaluation account.
  2. B.Profit and loss account.
  3. C.Capital account.
  4. D.Trading account.
Show the answer and explanation

Answer: A (Revaluation account.)

Explanation

When a partner is admitted the assets are revalued, and the gain or loss goes through a revaluation account.