Question : R and D are partners as per provisions of Indian Partnership Act 1932. On admission of a new partner M for 1/5 share, a revaluation account is prepared. M claims to have eqal share in revaluation profits. Choose the correct accounting treatment
Option 1:
M's share of revaluation profit is equal
Option 2:
M's share of revaluation profit is 1/5th
Option 3: M's share is revaluation profit is nil
Option 4: All of the above
Correct Answer:
Solution : Answer = M's share of revaluation profit is 1/5th
When a new partner is admitted to a partnership, their share of revaluation profit is typically based on their agreed-upon profit-sharing ratio. Since M is admitted for a 1/5 share, their share of revaluation profit would also be 1/5th, in accordance with their profit-sharing ratio. Hence, the correct option is 2.
Question :
Summarize the following paragraph:
Consistency is the most significant thing in everyone’s life. Without consistency one cannot live a content life. It is the act of living life following several rules and system. Consistency is the whole thing which we do in the correct way at correct time. It leads us to the accurate path. We all go after various types of consistency in our lives. There are many instances like we go to work, we eat food, we have tea, we speak with our friends... These all highlight traits of consistency.
Option 1: Consistency is the most indispensable principle to guide us
Option 2: Consistency is the worst attribute and is not inherent.
Option 3:
Consistency is not only the most important attribute but is also inherent
Option 4:
It is consistency which changes lives. A consistent person is sure to achieve something
Option 5: Consistency is the only significant of all the principles
Assertion (A): A firm can have a minimum of 2 with a maximum of 50 partners.
Reason (R): The limit of two partners flows from the definition in the Partnership Act, 1932. The maximum limit of partners is also prescribed in the Partnership Act, 1932.
Option 1: Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
Option 2: Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A)
Option 3: Assertion (A) is true but Reason (R) is False
Option 4: Both Assertion (A) and Reason (R) are not correct
Question : Under computerized accounting, hardware refers to
A logical sequence of actions to perform a task
Option 2: The raw fact (as input) for any business application
Option 3: Computer, associated peripherals, and their network
Option 4: User
Option 1: Security breach
Option 2: Staff opposition
Option 3: Automated document production
Option 4: Cost of training
Question : ---------------may be expressed as an arithmetical relationship between two accounting variables.
Option 1: Ratio
Option 2: Accounting ratio
Option 3: Ratio Analysis
Option 4: None of the above
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