If an asset is taken over by any partner, then Partner’s Capital account is debited and asset account is credited.

Question

State whether the following statements are True or False:

1. If an asset is taken over by any partner, then Partner’s Capital account is debited and asset account is credited. 

2. The net profit or loss on P&L Adjustment account is tobe transferred to Partner's Capital A/c in the capital ratio

Answer 1

1.True, 

2.False