Question : At the time of admission of a partner, the balance of the Investments Fluctuation Reserve, after meeting the loss on revaluation of investments is transferred to _____________of __________in their_____________.
Option 1: All partners capital account and in their new profit sharing ratio
Option 2: Old partners capital account and in their sacrificing ratio
Option 3: Old partners capital account and in their old profit sharing ratio
Option 4: Only sacrificing partners capital account and their sacrificing ratio
Correct Answer: Old partners capital account and in their old profit sharing ratio
Solution : Answer = Old partner's capital account and in their old profit-sharing ratio After all adjustments the revaluation profit and loss are transferred to the old partner's capital account but if their capital is fixed then the current account and in their old profit-sharing ratio. Hence, the correct option is 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 : In the event of a change in the profit-sharing ratio, the General Reserve existing in the Balance Sheet is transferred to the Capital Accounts of partners in their
Option 1: sacrificing ratio
Option 2: gaining ratio
Option 3: old profit-sharing ratio
Option 4: new profit-sharing ratio
Question : In the event of change in profit-sharing ratio, profit and loss (Dr) existing in the Balance Sheet is transferred to Capital Accounts of partners in their
Option 1: Sacrificing ratio
Question : In the event of change in profit-sharing ratio, profit and loss (credit balance) existing in the Balance Sheet is transferred to Capital Accounts of partners in their
Option 2: Gaining ratio
Option 3: Old profit-sharing ratio
Option 4: New profit-sharing ratio
Question : Gain (profit) or loss on revaluation of assets and reassessment of llabilities is transferred to Partner Capital Accounts in their
Option 1: Capital Ratio
Option 2: Equal ratio
Option 3: Old Profit-sharing Ratio
Option 4: Gaining ratio
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