Question : Assertion (A): Gita  and Rita are equal partners. They admitted Pooja  as a partner and their new profis sharing ratio was 5:3:2 . They revalued the assets and reassessed their liabilities. They did so because new partner should not be at an advantage or disadvantage

Reason (R): Assets and liabilities that exist before admission of Pooja are revalued/reassessed because increase in value of assets and decrease in value of liabilities and vice versa is for the period before admission of Pooja . If the change in values is accounted, Param will be at an advantage or disadvantage

In the context of above two statements, which of the following is correct?

Option 1: A) is correct, butt (R) is wrong. 

Option 2: Both (A) and (R) are correct. 

Option 3: (A) is wrong, but (R) is correct. 

Option 4: Both (A) and (R) are wrong.

Question : In case of admission of a partner Sacrificing ratio is used to distribute ___________

Option 1: Premium of Goodwill 

Option 2: General Reserve 

Option 3: Profit and Loss Account (Credit Balance) 

Option 4: Both (2) and (3) 

Question : At the time of  reconstruction of a partnership  due to admission of a new partner, the balance of the Workmen Compensation Reserve will be transferred to: 

Option 1: Old partners in the sacrificing ratio

Option 2: Old partners in their old profit sharing ratio

Option 3: Revaluation Account 

Option 4: All partners in the new profit sharing ratio 

Question : At the time of admission of a partner, Employees Provident Fund is: 

Option 1: Distributed to partners in the old profit sharing ratio 

Option 2: Distributed to partners in the new profit sharing ratio 

Option 3: Adjusted through gaining ratio 

Option 4: Should be shown on the liabilities side of new firm Balance Sheet

Question : Distribution of 'profit and loss  (credit) at the time of change in profit sharing ratio of existing partners is shared by ______(i)_____ whereas in case of admission of a partner, it is shared by_____(ii)_____. 

Option 1: (i) Remaining Partners, (ii) All Partners. 

Option 2: (i) All Partners, (ii) Old partners. 

Option 3: (i) New Partner, (ii) All partner 

Option 4: (i) Sacrificing Partner, (ii) Incoming partner