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Ans – d) Explanation:- The increase and decrease in assets and liabilities are first recorded in revaluation account. The final profit or loss of revaluation is distributed among partners.
Ans – b) Explanation:- The revaluation of assets and liabilities is done to protect the interest of partners. gaining partners should not be in advantage and sacrificing partners also should not be in a disadvantage.
Ans – d) Solution: Calculation of sacrifice/gain of partners Old Ratio = 1 : 1 : 1 New Ratio = 4 : 3 : 2 Avya = 1/3 – 4/9 = 3 – 4/9 = – 1/9 (gain) Divya =…
Ans – a) Explanation:- When a partner sacrifice their share of profits in favour of one or more partner is called sacrificing ratio.
Ans – c) Explanation:- In the absence of any information, workmen’s compensation reserve is distributed among partners in the old profit-sharing ratio.
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…
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.
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.…
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
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.