Question : Arrange the following steps in proper sequence in the context of the retirement of a partner, when total capital of new firm = Aggregate of Adjusted Capital of remaining partners.
I. Calculate New Capital of the remaining partners by dividing Total Capital of the new firm in their New Profit-sharing Ratio.
II. Find Surplus Capital/Deficit Capital of each continuing partner by comparing the New Capital with the Capital after Adjustments.
III. Calculate Total Capital of the new firm as follows.
IV. Calculate Adjusted Capitals of the remaining partners after adjustments.

Option 1: I,II,III,IV

Option 2: IV,III,I,II

Option 3: IV,III,II,I

Option 4: I,III,II,IV

Question : Arrange the following steps in proper sequence
When the Retiring Partner is to be paid through amount brought by the Remaining or Continuing partners in a manner to make their Capitals Proportionate to their New Profit-sharing Ratio and also leave a desired Cash Balance
1. Calculate Adjusted Capital of the remaining partners, i.e., after making adjustments for goodwill, reserves, accumulated profits/losses and gain or loss on revaluation
2. Calculate New Capital of each remaining partner as follows:
Total Capital of the New Firm) $\times$ New Profit Share.
3. Calculate Surplus Capital or Deficit Capital by comparing the New Capital and Adjusted Capital
4. Calculate Total Capital of the new firm as follows:
Aggregate of Adjusted Capital of Remaining Partners + Shortage of amount to be brought in by Remaining partners to pay the retiring partner (i.e., Amount payable to retiring partner - Existing Cash Balance) + Minimum Cash Balance Required

Option 1: I,II,III,IV

Option 2: I,II,IV,III

Option 3: I,III,II,IV

Option 4: None of the above

Question : Which of the following statement is in correct with respect of adjustment of capitals?

Option 1: Ascertain Adjusted Capital of remaining partners (after all adjustments).

Option 2: Calculate Proportionate Capital of remaining partners on the basis of total capital of the new firm and new profit-sharing ratio

Option 3: Find Surplus Capital/Deficit Capital of each continuing partner by comparing Proportionate Capital and Present Adjusted Capital.
Surplus Capital: When Present Adjusted Capital is more than the proportionate Capital.
Deficit Capital: When Present Adjusted Capital is less than the Proportionate Capital.

Option 4: All of the above

Question :

At the time of retirement of a partner, profit (gain) on revaluation will be credited to the Capital Accounts of

Option 1: retiring partner.

Option 2:

all partners in their old profit-sharing ratio.

Option 3:

the remaining partners in their old profit-sharing ratio.

Option 4:

the remaining partners in their new profit-sharing ratio.

Question : Identify the correct order for calculating goodwill under Capitalisation of Average Profit Method:
(i) Calculate capitalised value of the firm
(ii) Ascertain the value of net assets, on the date of valuation of goodwill
(iii) Calculate average profit earned
(iv) Find the difference between capitalised value of the firm and net assets

Option 1: (i), (ii), (iii), (iv)

Option 2: (ii), (iii), (iv), (i)

Option 3: (iii), (i), (ii), (iv)

Option 4: (iv), (iii), (ii), (i)