Question : If there is any unrecorded obligation/Liability at the time of admission, it will be -
Option 1: Debited to Goodwill Account
Option 2: Credited to partners’ Capital Accounts
Option 3: Credited to Revaluation Account
Option 4: Debited to Revaluation Account
Correct Answer: Debited to Revaluation Account
Solution : Revaluation accounts are nominal accounts created for the distribution and transfer of gains and losses resulting from changes in the profit-sharing ratio, partner admissions, retirement, and death, as well as increases and decreases in the book value of assets and liabilities. Unrecorded assets, assets that increase in value, and liabilities that decline in value are all credited to the revaluation account. Debits to the Revaluation Account are made for decreases in asset value, increases in liability value, and unrecorded obligations.
Hence the correct answer is option 4.
Question : If at the time of admission if there is some unrecorded Assets, it will be _________ to _______ Account.
Option 1: Credited, Revaluation
Option 2: Debited, Partners' Capital Account
Option 3: Credited, Partners' Capital
Option 4: None of the above
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
Question : At the time of admission of a partner, what will be the effect of the following information? Balance in Workmen compensation reserve Rs. 1,40,000. Claim for workmen compensation Rs. 1,10,000.
Option 1: Rs. 1,40,000 Debited to the Partner's Capital Accounts.
Option 2: Rs. 1,10,000 Debited to Revaluation Account.
Option 3: Rs. 30,000 Credited to the Partner's Capital Accounts.
Option 4: Rs. 30,000 to Debited Revaluation Account.
Question : At the time of admission of a partner, what will be the effect of the following information? Balance in Workmen compensation reserve Rs. 20,000. Claim for workmen compensation Rs. 45,000.
Option 1: Rs. 5,000 Debited to the Partner's capital Accounts.
Option 2: Rs. 40,000 Debited to Revaluation Account.
Option 3: Rs. 25,000 Debited to Revaluation Account.
Option 4: Rs. 40,000 Credited to Revaluation Account.
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
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