At the time of admission of a new partner, undistributed profits appearing in the balance sheet of the old firm is transferred to the capital account of _____.
A. Old partners in new profit-sharing ratio
B. All the partners in the new profit-sharing ratio
C. Old partners in the old profit-sharing ratio
D. None of the above
Answer:C
At the time of admission of a new partner, undistributed profits appearing in the balance sheet of the old firm is transferred to the capital account of _____.
A. Old partners in new profit-sharing ratio B. All the partners in the new profit-sharing ratio C. Old partners in the old profit-sharing ratio D. None of the above