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Answer
Ans – a) Explanation:- In the absence of any further information. the sacrificing ratio of the old partners is always equal to the old ratio.
Ans – a) Explanation:- Existing Goodwill was purchased by old partners in the past. the it should be written of from the books in their old profit sharing ratio.
Ans – c) Explanation:- Goodwill brought in by the incoming partner’s is distributed to old partners in their sacrificing ratio of compensate them.
Ans – b) Solution:- Calculation of the new profit-sharing ratio Old Ratio = 3 : 2 Z admitted for 1/5th share Remaining Share = 1 – 1/5 = 4/5 X’s Share in new firm = 4/5 × 3//5 = 12/25…
Ans – C) Solution:- Combined adjusted capital of the old partners = ₹ 1,00,000 + ₹ 50,000 = ₹ 1,50,000 Combined Profit share of the old partners = 1 – 1/5 = 4/5 Total Capital of the firm = 1,50,000…
Ans – a) Explanation:- Existing Goodwill was purchased before the admission of the new partner. Thus it must be written off in the old profit-sharing ratio at the time of admission of the new partner.
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