Question : Match the following :
i.
Sacrificing Ratio
A.
Nominal Account
ii.
Gaining Ratio
B.
Reconstitution of Partnership
iii.
Revaluation Account
C
New Ratio - Old Ratio
Iv
Admission of a Partner
D.
Old Ratio - New Ratio
Option 1: i- B, ii-C, iii-A, iv-D
Option 2: i- D, ii-B, iii-A, iv-C
Option 3: i- D, ii-C, iii-A, iv-B
Option 4: i- D, ii-C, iii-B, iv-A
Correct Answer: i- D, ii-C, iii-A, iv-B
Solution : Answer = i- D, ii-C, iii-A, iv-B
The Sacrificing Ratio is calculated as the Old Ratio minus the New Ratio during the reconstitution of a partnership, specifically upon the admission of a new partner. On the other hand, the Gaining Ratio is computed as the New Ratio minus the Old Ratio during the same reconstitution process. Revaluation Accounts (A) are nominal accounts reflecting changes in asset values during reconstitution. Admission of a partner involves changing the partnership's composition, affecting profit-sharing ratios and possibly asset valuations (Reconstitution of Partnership). Hence, the correct option is 3.
Question : Match the following with respect to journal entries for treatment of goodwill :
The incoming partner brings his share of goodwill,
No entry
The incoming partner does not bring his share of the goodwill
Premium for goodwill A/c. Dr.
Incoming Partner’s Capital A/c. Dr.
To Sacrificing Partners Capital A/c.
Incoming partner pays his share of goodwill privately
iv.
Incoming partner brings only a part of his share of goodwill
New Incoming Partner’s Capital A/c. Dr. To Sacrificing Partners Capital A/c.
Option 2: i- C, ii-D, iii-A, iv-B
Question : E and F were partners in a firm sharing profits in the ratio of 3: 1. They admitted G as a new partner on 1-3-2017 for 1/3rd share. It was decided that E, F and G will share future profits equally. G brought Rs.50,000 in cash and machinery worth Rs.70,000 for his share of profit as premium for goodwill. Which journal entries will be passed for accounting for Goodwill .
Option 1:
Cash A/c
Dr.
50,000
Machinery A/c
70,000
To Premium for Goodwill A/c
1,20,000
(Cash and Machinery contributed by G on his admission, as his share of goodwill premium)
Premium for Goodwill A/c
F’s Capital A/c
30,000
To E’s Capital A/c
1,50,000
(Premium for goodwill brought in by G Credited to E along with 1/12 of the goodwill to be contributed by F due to gain in his profit sharing ratio)
Option 2:
Date
Particulars
L.F.
Dr. (Rs.)
Cr. (Rs.)
2017
March 1
.
Option 3:
To F’s Capital A/c
90,000
Option 4: None of the above
Question : Read the following information carefully and answer the question
Revenue from Operations
8,75,000
Creditors
Bills Receivable
48,000
Bills Payable
52,000
Purchases
4,20,000
Trade Debtors
59,000
Option 1: 29.6 times
Option 2: 2.96 times
Option 3: 29.6%
Option 4: 2.69:1
Option 1: 30 days
Option 2: 60 days
Option 3: 45 days
Option 4: 15 days
Q. Calculate Trade Receivables Turnover Ratio.
Option 1: 8.18 times
Option 2: 8.23:1
Option 3: 8.18%
Option 4: 8.81:1
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