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Ans – i) – C, ii) – A Explanation:- (i) As it is the reduction in the book value of Plant and Machinery. The plant and machinery would be debited to Revaluation Account. (ii) Increase in creditors is debited to…
Ans – b) All unrecorded assets are credited to Revaluation Account at the time of reconstituted of the partnership firm.
Ans – b) Explanation:- At the time of change in profit sharing ratio. The revaluation of Assets and liabilities is carried out. Thus all unrecorded assets are credited and liabilities are debited to the revaluation account. The final revaluation profit…
Ans – d) Solution:- in the absence of any further information, Old ratio is the sacrificing ratio i.e. 1 : 1 Thus Aditya will get 1,20,000 × 1/2 = ₹ 60,000
Ans – a) Solution:- Let the share of C be X he takes 1/4 of his share from A = 1/4X B gives 3/16 from his share to C Thus as per the Question X = 1/4X + 3/16 X…
Ans – C) Solution:- Old Profit sharing Ratio of Shiv and Mohan = 5 : 3 Jea admitted for 3/10 Jea get his share 1/5 from Shiv and 1/10 from Mohan. Shiv new share = 5/8 – 1/5 = 25…
Ans – a) Explanation:- Old ratio of X and Y = 3 : 2 Z admitted for 2/10 share Remaining share = 1 – 2/10 = 8/10 Remaining share would be shared by old partners in their old profit sharing…
Ans – b) Explanation:- Accumulated profits and losses are the part of the past profits and losses. It must be divided to old partners in Old ratio.
Ans – b) Explanation:- General Reserve is the part of the past profit earned. it belongs to the old partners in old profit sharing ratio. thus General reserve is credited to old partners in the old ratio.
Ans – a) Explanation:- Old Profit sharing Ratio – New Profit Sharing Ratio