Question : If partners decided not to change book value of assets and liabilities on admission of new partners, then account prepared to adjust profit and loss arising on account of change in value of assets and liabilities is

Option 1: Profit and loss adjustment account

Option 2: Revaluation account

Option 3: Memorandum revaluation account

Option 4: None of the above

Question : If Memorandum revaluation account is prepared, Assets and liabilities will appear in balance sheet at

Option 1: New values

Option 2: Old values

Option 3: Cost

Option 4: None of the above

Question : Main objective for revaluing Assets and liabilities on admission is

Option 1: Assets and liabilities should appear at new values

Option 2: Any profit and losses on account of changes in value belong only to old partners

Option 3: All unrecorded assets and liabilities get recorded

Option 4: None of the above

Question : Credit side of revaluation account Rs 60,000 and debit side of revaluation account Rs 40,000 . Entry for the balance will be .

Option 1: A and B debited with Rs 12,000 and Rs 8,000 and credited revaluation account Rs 20,000

Option 2: Revaluation account Dr Rs 20,000 and crediting A's account Rs 12,000 and B's account Rs 8,000

Option 3: Revaluation account Dr 20,000 and crediting A, B and C with Rs 6,667 each

Option 4: None of the above

Question : A, B and C are partners in 3 : 4 : 2. B wants to retire from the firm. The profit on revaluation on that date was Rs.36,000. New ratio of A and C is 5 : 3. Profit on revaluation will be distributed as :

Option 1: A: Rs.16,000; B: Rs.12,000; C: Rs.8,000

Option 2: A: Rs.12,000; B: Rs.16,000; C: Rs.8,000

Option 3: A: Rs.15,615; C: Rs.12,375

Option 4: A: Rs.22,500; C: Rs.13,500