Question : A, B and C are partners in 3 : 4 : 2. B wants to retire from the firm. The profit on revaluation on that date was Rs.36,000. New ratio of A and C is 5 : 3. Profit on revaluation will be distributed as :
Option 1: A: Rs.16,000; B: Rs.12,000; C: Rs.8,000
Option 2: A: Rs.12,000; B: Rs.16,000; C: Rs.8,000
Option 3: A: Rs.15,615; C: Rs.12,375
Option 4: A: Rs.22,500; C: Rs.13,500
Correct Answer: A: Rs.12,000; B: Rs.16,000; C: Rs.8,000
Solution : Prodit on revalution is Rs.36000
On the date of retirement of B profit sharing ratio is 3:4:2
Hence profit on revaluation will be distributed as follows -
A 36000 * 3 / 9 = 12000
B 36000 * 4 / 9 = 16000
C 36000 * 2 / 9 = 8000
Hence the correct answer is option 2.
Question : X Y and Z are partners in 3: 4: 2. B wants to retire from the firm. The profit on revaluation on that date was Rs. 36,000. New ratio of A and C is 5: 3. Profit on revaluation will be distributed as:
Option 1: A Rs. 16,000 ; B Rs. 12,000 ; C Rs. 8,000
Option 2: A Rs. 12,000 ; B Rs. 16,000 ; C Rs. 8,000
Option 3: A Rs. 22,500 ; C Rs. 13,500
Option 4: A Rs.23,625; C Rs. 12,375
Question : A and B are equal partners with capitals of Rs.2,00,000 and Rs.1,00,000 respectively. As per deed, they are allowed an interest @ 8% p.a. on capital. During the year, the firm earned a profit of Rs.12,000. Interest on capital allowed to A and B will be:
Option 1: Rs.16,000 and Rs.8.000 respectively
Option 2: Rs.8,000 and Rs.4,000 respectively
Option 3: Nil
Option 4: Rs.6,000 each
Question : Credit side of revaluation account Rs 60,000 and debit side of revaluation account Rs 40,000 . Entry for the balance will be .
Option 1: A and B debited with Rs 12,000 and Rs 8,000 and credited revaluation account Rs 20,000
Option 2: Revaluation account Dr Rs 20,000 and crediting A's account Rs 12,000 and B's account Rs 8,000
Option 3: Revaluation account Dr 20,000 and crediting A, B and C with Rs 6,667 each
Option 4: None of the above
Question : X and Y are Partners in a Ratio of 3:2. Their capitals are Rs. 2,00,000 and Rs. 1,00,000, respectively. Interest on capital is allowed @8% p.a. The firm earned a profit of Rs. 60,000 for the year ended March 31st, 2019. Interest on capital will be
Option 1: X Rs. 16,000, Y Rs. 8,000
Option 2: X Rs. 8,000, Y Rs. 4,000
Option 3: X Rs. 14,400, Y Rs. 9,600
Option 4: No interest will be allowed.
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