Question : Chain and Harsha were partners in a firm sharing profits in the ratio of 3: 2. On 1-4-2014 their Balance Sheet was as follows :
| Balance Sheet of Charu and Harsha as on 1st April, 2014 | |||
| Liabilities | Amount(Rs) | Assets | Amount(Rs) |
| Creditors | 17,000 | Cash | 6,000 |
| General Reserve | 4,000 | Debtors | 15,000 |
| Workmen Compensation Fund | 9,000 | Investments | 20,000 |
| Investment Fluctuation Fund | 11,000 | Plant | 14,000 |
| Provision for bad debts | 2,000 | Land & buildings | 38,000 |
| Capitals: | |||
| Charu- 30,000 | |||
| Harsha- 20,000 | 50,000 | ||
| 93,000 | 93,000 | ||
On the above date Vaishali was admitted for 1/4 th share in the profits of the firm on the following terms :
(a) Vaishali will bring Rs.20,000 for her capital and Rs.4,000 for her share of goodwill premium.
(b) All debtors were considered good.
(c) The market value of investments was Rs. 15,000.
(d) There was a liability of Rs.6,000 for workmen compensation.
(e) Capital accounts of Charu and Harsha are to be adjusted on the basis of Vaishali's capital by opening current accounts.
Question:
Amount of Revaluation profit and loss will be
Option 1: Rs 2,000
Option 2: Rs 3,000
Option 3: Rs 4,000
Option 4: None of the above
Correct Answer: Rs 2,000
Solution : Answer = Rs 2000
| Revaluation A/c | |||
| Profit on Revaluation | 2000 | Provision for Doubtful debt | 2000 |
| Charu = 1200 | |||
| Harsha = 800 | |||
| 2000 | 2000 | ||
Hence, the correct option is 1.
Related Questions
Question : Chain and Harsha were partners in a firm sharing profits in the ratio of 3: 2. On 1-4-2014 their Balance Sheet was as follows :
| Balance Sheet of Charu and Harsha as on 1st April, 2014 | |||
| Liabilities | Amount(Rs) | Assets | Amount(Rs) |
| Creditors | 17,000 | Cash | 6,000 |
| General Reserve | 4,000 | Debtors | 15,000 |
| Workmen Compensation Fund | 9,000 | Investments | 20,000 |
| Investment Fluctuation Fund | 11,000 | Plant | 14,000 |
| Provision for bad debts | 2,000 | Land & buildings | 38,000 |
| Capitals: | |||
| Charu- 30,000 | |||
| Harsha- 20,000 | 50,000 | ||
| 93,000 | 93,000 | ||
On the above date Vaishali was admitted for 1/4 th share in the profits of the firm on the following terms :
(a) Vaishali will bring Rs.20,000 for her capital and Rs.4,000 for her share of goodwill premium.
(b) All debtors were considered good.
(c) The market value of investments was Rs. 15,000.
(d) There was a liability of Rs.6,000 for workmen compensation.
(e) Capital accounts of Charu and Harsha are to be adjusted on the basis of Vaishali's capital by opening current accounts.
Question:
Amount distributed among the old partners capital account in Respect of Investment fluctuating fund.
Option 1: debiting charu's capital account with Rs 36,00 and harsha with Rs 2,400
Option 2: crediting Charu's Capital account with Rs 3,600 and Harsh with Rs 2,400
Option 3: crediting Charu's capital account with Rs 6,600 and Harsh's with Rs 4,400
Option 4: None of these
Question : Chain and Harsha were partners in a firm sharing profits in the ratio of 3: 2. On 1-4-2014 their Balance Sheet was as follows :
| Balance Sheet of Charu and Harsha as on 1st April, 2014 | |||
| Liabilities | Amount(Rs) | Assets | Amount(Rs) |
| Creditors | 17,000 | Cash | 6,000 |
| General Reserve | 4,000 | Debtors | 15,000 |
| Workmen Compensation Fund | 9,000 | Investments | 20,000 |
| Investment Fluctuation Fund | 11,000 | Plant | 14,000 |
| Provision for bad debts | 2,000 | Land & buildings | 38,000 |
| Capitals: | |||
| Charu- 30,000 | |||
| Harsha- 20,000 | 50,000 | ||
| 93,000 | 93,000 | ||
On the above date Vaishali was admitted for 1/4 th share in the profits of the firm on the following terms :
(a) Vaishali will bring Rs.20,000 for her capital and Rs.4,000 for her share of goodwill premium.
(b) All debtors were considered good.
(c) The market value of investments was Rs. 15,000.
(d) There was a liability of Rs.6,000 for workmen compensation.
(e) Capital accounts of Charu and Harsha are to be adjusted on the basis of Vaishali's capital by opening current accounts.
Question:
Amount distributed amongst the old partners In respect of workmen's compensation fund will be
Option 1: Crediting old partners capital Account with Rs 2,000 and Rs 1,000
Option 2: crediting the old partner's capital account with Rs 1,800 and Rs 1,200
Option 3: debiting old partner's capital account with Rs 1,800 and Rs 1,200
Option 4: None of the above
Question : Chain and Harsha were partners in a firm sharing profits in the ratio of 3: 2. On 1-4-2014 their Balance Sheet was as follows :
| Balance Sheet of Charu and Harsha as on 1st April, 2014 | |||
| Liabilities | Amount(Rs) | Assets | Amount(Rs) |
| Creditors | 17,000 | Cash | 6,000 |
| General Reserve | 4,000 | Debtors | 15,000 |
| Workmen Compensation Fund | 9,000 | Investments | 20,000 |
| Investment Fluctuation Fund | 11,000 | Plant | 14,000 |
| Provision for bad debts | 2,000 | Land & buildings | 38,000 |
| Capitals: | |||
| Charu- 30,000 | |||
| Harsha- 20,000 | 50,000 | ||
| 93,000 | 93,000 | ||
On the above date Vaishali was admitted for 1/4 th share in the profits of the firm on the following terms :
(a) Vaishali will bring Rs.20,000 for her capital and Rs.4,000 for her share of goodwill premium.
(b) All debtors were considered good.
(c) The market value of investments was Rs. 15,000.
(d) There was a liability of Rs.6,000 for workmen compensation.
(e) Capital accounts of Charu and Harsha are to be adjusted on the basis of Vaishali's capital by opening current accounts.
Question:
Capital accounts of Charu and Harsha are to be adjusted on the basis of Vaishali's capital by opening current accounts. Choose the correct Journal entry
Option 1: Harsh current account debiting with Rs 5,400 and Charu's crediting Rs 3,600
Option 2: Charu's current account crediting with Rs 5,400 and Harsha's crediting Rs 3,600
Option 3: Charu and Harsh both current account will be debited with Rs 5,400 and Rs 3,600
Option 4: None of the above
Question : From the following information,
| Particulars | 31st march, 2020(Rs) | 31st march, 2019(Rs) |
| Furniture (at cost) | 20,000 | 28,000 |
| Accumulated Depreciation on furniture | 6,000 | 9,000 |
| Share capital | 1,40,000 | 1,00,000 |
| Bank loan | 25,000 | 15,000 |
During the year, furniture book value Rs 4,000 was sold at a gain (profit) of Rs 3,000. Depreciation on furniture charged during the year amounted to Rs 5,000.
Question:
The value of cash flow from investing activities are
Option 1: Rs 4,000
Option 2: Rs 7,000
Option 3: Rs (7,000)
Option 4: Rs 3,000
Question : From the following information,
| Particulars | 31st march, 2020(Rs) | 31st march, 2019(Rs) |
| Furniture (at cost) | 20,000 | 28,000 |
| Accumulated Depreciation on furniture | 6,000 | 9,000 |
| Share capital | 1,40,000 | 1,00,000 |
| Bank loan | 25,000 | 15,000 |
During the year, furniture book value Rs 4,000 was sold at a gain (profit) of Rs 3,000. Depreciation on furniture charged during the year amounted to Rs 5,000.
Question:
The value of cash flow from investing activities are
Option 1: Rs 4,000
Option 2: Rs 7,000
Option 3: Rs (7,000)
Option 4: Rs 3,000
Trending Articles/News
