Question : Due to the change in profit, Amit‘s gain is 1/6 while Sumit sacrificed 1/6.They decide to record the effect of following revaluations without affecting the book value of the assets and liabilities by passing a single adjustment entry: 

                                       Book value                                                    Revised value 

Building                          1,00,000                                                       1,50,000

Machinery                      1,50,000                                                        1,40,000

Trade creditor                 50,000                                                           45,000

Outstanding rent             45,000                                                           60,000

 The necessary adjusting entry will involve 

 

Option 1: Dr Amit and Cr Sumit by Rs 10,000

Option 2: Dr Amit and Cr Sumit with Rs 10,000

Option 3: Dr  Amit and Cr Sumit with Rs 5,000

Option 4: Dr Amit and Cr Sumit with Rs 9,000

Question : Due to the change in the profit sharing ratio, X sacrifices is 3/10 while Z’s Gain is 3/10. They decide to record the effect of the following without affecting the book  figure, by passing an adjustment entry 

General Reserve Cr   Rs 35,000

Profit and loss Cr        Rs 15,000

Advertisement suspense Dr Rs 20,000

The necessary adjustment entry will be 

Option 1: Dr Z and Cr X by Rs 9,000

Option 2: Dr X and Cr Y by Rs 9,000

Option 3: Dr X and Cr Y by Rs 18,000

Option 4: Dr Y and Cr X By Rs 9,000

Question : J, K and T are partners in a firm sharing profits in the ratio of 3 : 2 : 1. They decided to share future profits equally. The Profit and Loss Account showed a Credit balance of Rs 45,000 and a General Reserve of Rs 45,000. If these are not to be shown in balance sheet, in the journal entry :

Option 1: Cr. J by RS 15,000: Dr. T by Rs 15,000

Option 2: Dr. J by Rs 15,000; Cr. T by Rs 15,000

Option 3: Cr. J by Rs 45,000; Cr. K by Rs 30,000; Cr. T by Rs 15,000

Option 4: Cr. J by Rs 30,000; Cr. K by Rs 30,000; Cr. T by Rs 30,000

Question : A, B and C were partners sharing profit and losses in the ratio of 7:3:2. From 1st April 2020 they decided to share profit and losses in the ratio of 8:4:3. Goodwill is Rs 2,40,000. In adjustment entry for goodwill 

Option 1:  Cr A by Rs 12,000, Dr B by Rs 4000 and Dr C by Rs 8,000

Option 2: Dr A by Rs 6000, Cr B by Rs 4000, Cr C by Rs 4000

Option 3: Cr A by Rs 12,000, Dr B by Rs 4000, Dr C by Rs 4,000

Option 4: Dr A by Rs 12,000, Cr B By Rs 8000 and Cr C by Rs 4,000

Question : A, B and C are partners in a firm sharing profits in the ratio of equally  They decided to share profits 4:3:1 w.e.f. 1st April, 2019. On that date the Profit and Loss Account showed the credit balance of Rs 48,000. Instead of closing the Profit and Loss Account, it was decided to record an adjustment entry reflecting the change in profit sharing ratio. In the journal entry :
 

Option 1: Dr. A by Rs 2000; Dr. B by Rs 8000; Cr. C by Rs 10,000

Option 2: Cr. A by Rs 2000; Cr. B by Rs 8,000; Dr. C by Rs10,000

Option 3: Cr. A by Rs 8,000; Cr. B by Rs 2000; Dr. C by Rs10,000

Option 4: Dr. A by Rs 8,000; Dr. B by Rs 2,000; Cr. C by Rs10000

Question : M, N and O are partners in a firm sharing profits in the ratio equally  Their Balance Sheet as at 31-3-2019 showed a debit balance of Profit & Loss A/c 90,000. From 1-4-2019 they will share profits 4:3:2. In the necessary journal entry to give effect to the above arrangement when M, N and O decided not to close the Profit & Loss Account:
 

Option 1: Dr. M by Rs 10,000; Cr. O by Rs 10,000

Option 2: Cr. M by Rs 10,000; Dr. O by Rs 10,000

Option 3: Dr. M by Rs 20,000; Cr. O by Rs 20,000

Option 4: Cr. M by Rs 20,000; Dr. O by Rs 20,000