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The ratio in which one or more partners of the firm forego, i.e., sacrifice their share of profits in favour of one or more partners of the firm is known as:

Ans – a) Explanation:- When a partner sacrifice their share of profits in favour of one or more partner is called sacrificing ratio.

Anurag Pathak
May 3, 2023

A, B and C are partners sharing profits in the ratio of 5 : 3 : 2. They decided to share future profits in the ratio of 2 : 3 : 5. What will be the accounting treatment of the Workmen Compensation Reserve appearing in the Balance Sheet on that date when no other information is available for the same?

Ans – c) Explanation:- In the absence of any information, workmen’s compensation reserve is distributed among partners in the old profit-sharing ratio.

Anurag Pathak
May 3, 2023

X and Y shared profits and losses in the ratio of 3 : 2. With effect from 1st April 2023, they decided to share profits equally. The goodwill of the firm was valued at ₹ 60,000. The adjustment entry will be:

Ans – a) Explanation:- Calculation of Gain/sacrifice of partners X = 3/5 – 1/2 = 6 – 5/10 = 1/10 (Sacrifice) Y = 2/5 – 1/2 = 4 – 5/10 = – 1/10 (gain) Calculation of partners’ share in the…

Anurag Pathak
May 3, 2023

Which of the following does not result into the reconstitution of a firm?

Ans – a) Explanation:- At the time of dissolution of the partnership firm, the firm is completely shut down. Thus there is no scope of the reconstitution of the partnership firm.

Anurag Pathak
May 3, 2023

The adjustment required at the time of reconstitution of a partnership firm is/are

Ans – d) Explanation:- At the time of reconstitution of a partnership firm, the goodwill is adjusted. accumulated profit and reserves are distributed. Revaluation of assets and reassessment of liabilities is done due to a change in profit sharing ratio.…

Anurag Pathak
May 3, 2023

If the existing profit sharing ratio among a, B and C of 3 : 2 : 1 is changed to 1 : 2 : 3, then the partner (s) whose share will be unaffected is/are

Ans – b) Explanation:- A = 3/6 – 1/6 = 2/6 = 1/3 B = 2/6 – 2/6 = 0/6 = 0 C = 1/6 – 3/6 = – 2/6 = – 1/3

Anurag Pathak
May 3, 2023

Any change in the relationship of existing partners which results in an end of the existing agreement and enforces making of a new agreement is called

Ans – b) Explanation:- When there is any change in agreement among partners. The old partnership is ended and new partnership deed is prepared. This whole process is called reconstitution of partnership.

Anurag Pathak
May 3, 2023

Suresh, Ramesh, Mahesh and Ganesh were partners in a firm sharing profits in the ratio of 2 : 2 : 3 : 3. On 1st April, 2016, their Balance Sheet was as follows:

Solution:-

Anurag Pathak
May 3, 2023

Ram, Mohan, Sohan and Hari were partners in a firm sharing profits in the ratio of 4 : 3 : 2 : 1. On 1st April, 2016, their Balance Sheet was as follows:

Solution:-

Anurag Pathak
May 3, 2023

Balance Sheet of X and Y, who share profits and losses as 5 : 3, as at 1st April, 2022 is:

Solution:-

Anurag Pathak
May 3, 2023

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The ratio in which one or more partners of the firm forego, i.e., sacrifice their share of profits in favour of one or more partners of the firm is known as:

X and Y shared profits and losses in the ratio of 3 : 2. With effect from 1st April 2023, they decided to share profits equally. The goodwill of the firm was valued at ₹ 60,000. The adjustment entry will be:

Which of the following does not result into the reconstitution of a firm?

The adjustment required at the time of reconstitution of a partnership firm is/are

If the existing profit sharing ratio among a, B and C of 3 : 2 : 1 is changed to 1 : 2 : 3, then the partner (s) whose share will be unaffected is/are

Any change in the relationship of existing partners which results in an end of the existing agreement and enforces making of a new agreement is called

Suresh, Ramesh, Mahesh and Ganesh were partners in a firm sharing profits in the ratio of 2 : 2 : 3 : 3. On 1st April, 2016, their Balance Sheet was as follows:

Ram, Mohan, Sohan and Hari were partners in a firm sharing profits in the ratio of 4 : 3 : 2 : 1. On 1st April, 2016, their Balance Sheet was as follows:

Balance Sheet of X and Y, who share profits and losses as 5 : 3, as at 1st April, 2022 is: