Question :
On the retirement of Hari from the firm of Hari, Ram and Sharma, the Balance Sheet showed a credit balance of Rs. 12,000 in the Profit and Loss Account. For calculating the amount payable to Hari, this balance will be transferred
Option 1:
to the credit of the Capital Accounts of Hari, Ram and Sharma equally.
Option 2:
to the debit of the Capital Accounts of Hari, Ram and Sharma equally.
Option 3:
to the debit of the Capital Accounts of Ram and Sharma equally.
Option 4: to the credit of the Capital Accounts of Ram and Sharma equally.
Correct Answer:
Solution : Answer = to the credit of the Capital Accounts of Hari, Ram and Sharma equally.
In this scenario, the credit balance of Rs. 12,000 in the Profit and Loss Account represents profit earned by the firm. Upon Hari's retirement, this profit should be distributed among all partners, including Hari, as per their profit-sharing ratio. Therefore, the amount will be transferred to the credit of the Capital Accounts of Hari, Ram, and Sharma equally. Hence, the correct option is 1.
At the time of retirement of a partner, profit (gain) on revaluation will be credited to the Capital Accounts of
Option 1: retiring partner.
all partners in their old profit-sharing ratio.
the remaining partners in their old profit-sharing ratio.
Option 4:
the remaining partners in their new profit-sharing ratio.
Question : At the time of admission of a partner, what will be the effect of the following information? Balance in Workmen compensation reserve Rs. 28,000. Claim for workmen compensation Rs. 20,000.
Option 1: Rs. 28,000 Debited to the Partner's capital Accounts.
Option 2: Rs. 2,000 Debited to Revaluation Account.
Option 3: Rs. 8,000 Credited to the Partner's capital Accounts.
Option 4: Rs. 20,000 to Debited Revaluation Account
Question : In the event of a change in the profit-sharing ratio, the General Reserve existing in the Balance Sheet is transferred to the Capital Accounts of partners in their
Option 1: sacrificing ratio
Option 2: gaining ratio
Option 3: old profit-sharing ratio
Option 4: new profit-sharing ratio
Question : At the time of admission of a partner, what will be the effect of the following information? Balance in Workmen compensation reserve Rs. 1,40,000. Claim for workmen compensation Rs. 1,10,000.
Option 1: Rs. 1,40,000 Debited to the Partner's Capital Accounts.
Option 2: Rs. 1,10,000 Debited to Revaluation Account.
Option 3: Rs. 30,000 Credited to the Partner's Capital Accounts.
Option 4: Rs. 30,000 to Debited Revaluation Account.
Question : On dissolution of a firm, a partner took over Rs.34,000 investments for Rs.28,000. Which one of the following accounts will be debited/credited with how much amount?
Option 1: Partner's Capital Account Debit with 28,000
Option 2: Partner's Capital Account Credit with 34,000
Option 3: Realisation Account Credit with 34,000
Option 4: Realisation Account debited with 34,000
Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile