Question :
At the time of retirement of a partner, profit (gain) on revaluation will be credited to the Capital Accounts of
Option 1: retiring partner.
Option 2:
all partners in their old profit-sharing ratio.
Option 3:
the remaining partners in their old profit-sharing ratio.
Option 4:
the remaining partners in their new profit-sharing ratio.
Correct Answer:
Solution : Answer = all partners in their old profit-sharing ratio.
When a partner retires, the gain on the revaluation of assets is credited to the Capital Accounts of all partners in their old profit-sharing ratio. This ensures that all partners benefit from the increased value of the assets and reflects their respective interests in the partnership's assets. Hence, the correct option is 2.
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 : When goodwill existing in the books is written off at the time of admission of a partner it is transferred to Partners' Capital Accounts in their
Option 1: Old profit-sharing ratio
Option 2: New profit-sharing ratio
Option 3: Sacrificing ratio
Option 4: Gaining ratio
Question : R, S and T are partners. Before changing their profit-sharing ratio to 5:3:2, they were sharing profit equally. Workmen's compensation reserve exited at Rs 1,00,000 against which a claim existed at Rs 20,000. The total amount that will be credited to their capital accounts in their old profit-sharing ratio will be?
Option 1: Rs 1,00,000
Option 2: Rs 80,000
Option 3: Rs 1,00,000 credited and Rs 20,000 debited
Option 4: Rs 20,000 credited and Rs 1,00,000 debited
On the retirement of Hari from the firm of Hari, Ram and Sharma, the Balance Sheet showed a credit balance of Rs. 12,000 in the Profit and Loss Account. For calculating the amount payable to Hari, this balance will be transferred
Option 1:
to the credit of the Capital Accounts of Hari, Ram and Sharma equally.
to the debit of the Capital Accounts of Hari, Ram and Sharma equally.
to the debit of the Capital Accounts of Ram and Sharma equally.
Option 4: to the credit of the Capital Accounts of Ram and Sharma equally.
Question : At the time of admission of a partner, what will be the effect of the following information? Balance in Workmen compensation reserve Rs. 28,000. Claim for workmen compensation Rs. 20,000.
Option 1: Rs. 28,000 Debited to the Partner's capital Accounts.
Option 2: Rs. 2,000 Debited to Revaluation Account.
Option 3: Rs. 8,000 Credited to the Partner's capital Accounts.
Option 4: Rs. 20,000 to Debited Revaluation Account
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