Question : Arrange the following steps in proper sequence in the context of the retirement of a partner, when total capital of new firm = Aggregate of Adjusted Capital of remaining partners. I. Calculate New Capital of the remaining partners by dividing Total Capital of the new firm in their New Profit-sharing Ratio. II. Find Surplus Capital/Deficit Capital of each continuing partner by comparing the New Capital with the Capital after Adjustments. III. Calculate Total Capital of the new firm as follows. IV. Calculate Adjusted Capitals of the remaining partners after adjustments.
Option 1: I,II,III,IV
Option 2: IV,III,I,II
Option 3: IV,III,II,I
Option 4: I,III,II,IV
Correct Answer: IV,III,I,II
Solution : Answer = IV, III, I, II
The correct sequence of steps in the context of the retirement of a partner, when the total capital of the new firm equals the aggregate of adjusted capitals of remaining partners, is as follows:
IV. Calculate the Adjusted Capitals of the remaining partners after adjustments.
III. Calculate the Total Capital of the new firm.
I. Calculate the New Capital of remaining partners by dividing Total Capital of the new firm in their New Profit-sharing Ratio.
II. Find the Surplus Capital/Deficit Capital of each continuing partner by comparing the New Capital with the Capital after Adjustments.
This sequence ensures that the retirement process is carried out systematically and accurately, considering the adjustments needed for the remaining partners. Hence, the correct option is 2.
Question : When the Retiring Partner is to be paid through amount brought by the remaining partners in a manner to make their capitals proportionate to their New Profit-sharing Ratio. Arrange the following steps in proper sequence I. Calculate Adjusted Capital of remaining partners
Question : Arrange the following steps in proper sequence When the Retiring Partner is to be paid through amount brought by the Remaining or Continuing partners in a manner to make their Capitals Proportionate to their New Profit-sharing Ratio and also leave a desired Cash
Question : Which of the following statement is in correct with respect of adjustment of capitals?
Question : Identify the correct order for calculating goodwill under Capitalisation of Average Profit Method: (i) Calculate capitalised value of the firm (ii) Ascertain the value of net assets, on the date of valuation of goodwill (iii) Calculate average
Question : Directions: Which of the given responses would be the meaningful order of the following? (i) Infant (ii) Senility (iii) Adulthood (iv) Adolescent (v) Childhood
Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile