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Ans – a) Solution:- Final Accumulated Profit = General Reserve + Profit and Loss (cr.) + Advertisement Suspence A/c (Dr.) Final Accumulated Profit = 35,000 + 15,000 – 20,000 = ₹ 30,000 X share = 30,000 × 3/10 = ₹…

Ans – c) Solution:- Building – ₹ 50,000 Machinery – (₹10,000) Trade Creditors – ₹ 5,000 Outstanding Rent – (₹ 15,000) Revaluation Profit = ₹ 30,000 Shiv share in Revaluation Profit = 30,000 × 1/6 = ₹ 5,000 (debit) Om…

Ans – a) Solution:- Advertisement suspense will be written off in the old ratio among partners. Meera share = 45,000 × 2/5 = ₹ 18,000 Myra share = 45,000 × 2/5 = ₹ 18,000 Neera share = 45,000 × 1/5…

Ans – a) Solution:- Old Ratio = 3 : 1 New Ratio = 2 : 1 Rajan = 1/4 – 1/3 = 3 – 4/12 = – 1/12 (gain)

Ans – b) Solution:- Old Ratio = 2 : 1 New Ratio = 1 : 1 Raju = 2/3 – 1/2 = 4 – 3/6 = 1/6 (sacrifice) Gauarv = 1/3 – 1/2 =  2 – 3/6 = – 1/6…

Ans – a) Explanation:- at the time of reconstitution of the firm, the gaining partner compensates the amount of goodwill to the sacrificing partner. It is done so that gaining partner does not remain in advantage and sacrificing partner in…

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.