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Ans – c) The difference between amount due and paid to the retiring partners is the share in goodwill paid on valuation. Thus Assertion is correct. The gaining partners compensate the amount of goodwill due to the retiring partners in…
Ans – d) Explanation:- Amount due to the partner may be paid immediately in cash and is transferred to the loan and paid in installments later.
Ans – a) Explanation:- The assets and liabilities are revalued at the current prices and net profit or loss on revaluation is either credited or debited to all the partners in the old profit-sharing ratio, ensuring no one remains in…
Ans – a) When a partner retired, the combined profit share of continuing partners increases as the individual profit share of continuing partners increases after acquiring the retiring partner’s share.
Ans – a) Goodwill is the expected future profits that would be earned in future on the basis of efforts made till date. If a partner sacfices his share, he will get less share out of it equal to the…
Ans – d) Explanation:- The retiring partner is entitled to his share in firm’s goodwill as goodwill is expected future profits that is expected on the efforts made by all the partners till date.
Ans – a) All accumulated profit and losses and on reassessment of assets and liabilities are of the past activities of the firm. Thus retiring partner also get profit and bear loss if any in its old profit share.
Ans – a) Explanation:- Retirement of a partner means reconstitution of the partnership, where partnership comes to and end but firm continues.
Ans – b) Solution:- Amount Due to Mohan = Opening Capital + Loan Account Balance + Accrued Interest on loan + share in goodwill + Share in Revaluation Profit Amount Due to Mohan = 1,50,000 + 1,25,500 + 4,000 +…
Ans – b) Solution:- Old Profit sharing ratio of Akhil, Vipul, and Ritvik is 5 : 3 : 2 Akhil Retired the gaining ratio of Vipul and Ritvik is 3 : 2 Goodwill of the firm = ₹ 5,00,000 Akhil…