Question : Revaluation of Assets at the time of admission of a partner shows a gain in its revaluation process. It indicates that their present value is (i) .........from their (ii)..........
Option 1: (i) Less (ii) Book value.
Option 2: (i) More (ii) Book Value.
Option 3: (i) Less (ii) Fixed Asset
Option 4: (i) More (ii) Current Asset
Correct Answer: (i) Less (ii) Book value.
Solution : Answer = (i) Less (ii) Book value.
When there is a gain in the revaluation process of assets at the time of admitting a partner, it means their present value is less than their book value. This suggests that the assets are valued at a lower amount than their recorded value in the books, indicating a decrease in their value. Hence, the correct option is 1.
Question : Gain/loss on revaluation at the time of change in profit sharing ratio of existing partners is shared by ______(i)_____ whereas in case of admission of a partner, it is shared by _____(ii)_____.
Option 1: (i) Remaining Partners, (ii) All Partners.
Option 2: (i) All Partners, (ii) Old partners.
Option 3: (i) New Partner, (ii) All partner
Option 4: (i) Sacrificing Partner, (ii) Incoming partner
Question : Distribution of 'profit and loss (credit) at the time of change in profit sharing ratio of existing partners is shared by ______(i)_____ whereas in case of admission of a partner, it is shared by_____(ii)_____.
Question : Assertion (A): Gita and Rita are equal partners. They admitted Pooja as a partner and their new profis sharing ratio was 5:3:2 . They revalued the assets and reassessed their liabilities. They did so because new partner should not be at an advantage or disadvantage
Reason (R): Assets and liabilities that exist before admission of Pooja are revalued/reassessed because increase in value of assets and decrease in value of liabilities and vice versa is for the period before admission of Pooja . If the change in values is accounted, Param will be at an advantage or disadvantage
In the context of above two statements, which of the following is correct?
Option 1: A) is correct, butt (R) is wrong.
Option 2: Both (A) and (R) are correct.
Option 3: (A) is wrong, but (R) is correct.
Option 4: Both (A) and (R) are wrong.
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 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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