Question : When the Retiring Partner is to be paid through amount brought by the remaining partners in a manner to make their capitals proportionate to their New Profit-sharing Ratio. Arrange the following steps in proper sequence
I. Calculate Adjusted Capital of remaining partners after adjustments.
II. Calculate Total Capital of the new firm as follows:

Aggregate of adjusted capital of remaining partners + Shortage of amount to be brought in by continuing partners to pay the retiring partner
III. Find Surplus Capital/Deficit Capital of each continuing partner by comparing New Capital with the Adjusted Old Capital
IV. Calculate New Capital of remaining partners by dividing Total Capital of the new firm in their New Profit-sharing Ratio.

Option 1: I,II,III,IV

Option 2: I,III,IV,II

Option 3: I,II,IV,III

Option 4: IV,III,II,I

Question : Arrange the following steps in proper sequence in the context of the retirement of a partner, when total capital of new firm = Aggregate of Adjusted Capital of remaining partners.
I. Calculate New Capital of the remaining partners by dividing Total Capital of the new firm in their New Profit-sharing Ratio.
II. Find Surplus Capital/Deficit Capital of each continuing partner by comparing the New Capital with the Capital after Adjustments.
III. Calculate Total Capital of the new firm as follows.
IV. Calculate Adjusted Capitals of the remaining partners after adjustments.

Option 1: I,II,III,IV

Option 2: IV,III,I,II

Option 3: IV,III,II,I

Option 4: I,III,II,IV

Question : If retiring partner's Capital Account after adjustments shows 'Debit Balance', that much amount is receivable from the retiring partner. The entry is:

Option 1: Retiring Partner's Capital A/c ...Dr. [Due Amount]
To Cash/Bank a/c

Option 2: Cash/BankA/c ...Dr.
To Retiring Partner's Capital A/c

Option 3: Interest A/c Dr
To Retiring Partner's Loan A/c

Option 4: None of the above

Question : Which of the following statement is in correct with respect of adjustment of capitals?

Option 1: Ascertain Adjusted Capital of remaining partners (after all adjustments).

Option 2: Calculate Proportionate Capital of remaining partners on the basis of total capital of the new firm and new profit-sharing ratio

Option 3: Find Surplus Capital/Deficit Capital of each continuing partner by comparing Proportionate Capital and Present Adjusted Capital.
Surplus Capital: When Present Adjusted Capital is more than the proportionate Capital.
Deficit Capital: When Present Adjusted Capital is less than the Proportionate Capital.

Option 4: All of the above

Question : Identify the correct order for calculating goodwill under Capitalisation of Average Profit Method:
(i) Calculate capitalised value of the firm
(ii) Ascertain the value of net assets, on the date of valuation of goodwill
(iii) Calculate average profit earned
(iv) Find the difference between capitalised value of the firm and net assets

Option 1: (i), (ii), (iii), (iv)

Option 2: (ii), (iii), (iv), (i)

Option 3: (iii), (i), (ii), (iv)

Option 4: (iv), (iii), (ii), (i)