Accounting for Partnership Firms-Reconstitution and Dissolution (CBSE Class-12 Accountancy): Questions 29 - 37 of 60

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Question number: 29

» Accounting for Partnership Firms » Reconstitution and Dissolution » Retirement and Death of a Partner

Short Answer Question▾

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How is goodwill adjusted in the books of a firm -when a partner retires from partnership?

Question number: 30

» Accounting for Partnership Firms » Reconstitution and Dissolution » Change in the Profit Sharing Ratio

Short Answer Question▾

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P, Q and R are partners in a firm sharing profits in the ratio of 2: 2: 1 on 1.4. 2007 the partners decided to share future profits in the ratio of 3: 2: 1 on that day balance sheet of the firm shows General Reserve of Rs. 50, 000. Pass entry for distribution of reserve.

Question number: 31

» Accounting for Partnership Firms » Reconstitution and Dissolution » Admission of a Partner

One Liner Question▾

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At the time of admission of partner where will you record ‘unrecorded investment’?

Question number: 32

» Accounting for Partnership Firms » Reconstitution and Dissolution » Admission of a Partner

One Liner Question▾

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A and B are partners, sharing profits in the ratio of 3: 2. C admits for 1/5 share. State the sacrificing ratio.

Question number: 33

» Accounting for Partnership Firms » Reconstitution and Dissolution » Admission of a Partner

One Liner Question▾

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What is meant by the new profit - sharing Ratio in case of admission of a Partner?

Question number: 34

» Accounting for Partnership Firms » Reconstitution and Dissolution » Retirement and Death of a Partner

Short Answer Question▾

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Why is it necessary to revalue assets and reassess liabilities at the time of retirement of a partner?

Question number: 35

» Accounting for Partnership Firms » Reconstitution and Dissolution » Admission of a Partner

One Liner Question▾

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Why a new Partners brings capital into the firm?

Question number: 36

» Accounting for Partnership Firms » Reconstitution and Dissolution » Retirement and Death of a Partner

Short Answer Question▾

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Why is it necessary to distribute Reserves Accumulated, Profits and Losses at the time of retirement or death of a partner?

Question number: 37

» Accounting for Partnership Firms » Reconstitution and Dissolution » Admission of a Partner

Essay Question▾

Describe in Detail

Dinesh, Yasmine and Faria are partners in a firm, sharing profits and losses in 11: 7: 2 respectively. The Balance Sheet of the firm as on 31st Dec 2001 was as follows:

On the same date, Annie is admitted as a partner for on-sixth share in the profits with Capital of Rs. 4, 500 and necessary amount for his share of goodwill on the following terms: -

a. Furniture of Rs. 2, 400 were to be taken over by Dinesh, Yasmine and Faria equally.

b. A Liability of Rs. 1, 670 be created against Bills discounted.

c. Goodwill of the firm is to be valued at 2.5 years’ purchase of average profits of 2 years. The profits are as under:

2000: - Rs. 2, 000 and 2001 - Rs. 6, 000.

d. Drawings of Dinesh, Yasmine, and Faria were Rs. 2, 750; Rs. 1, 750; and Rs. 500 Respectively.

e. Machinery and Public Deposits are revalued to Rs. 2, 000 and Rs. 1, 000 respectively.

Prepare Revaluation Account, Partners’ Capital Accounts and Balance Sheet of the new firm.

Explanation

REVALUATION ACCOUNT in the Books of Dinesh, Yamine, Farte and Anie

shows re-valuated amount of assets and liabilities

Particulars

amount

Particulars

amount

To Bills Discounted A/c

1670

By Public deposits A/c

190

By Machinery A/c

200

By Loss transferred to

Dinesh’s capital A/c

704

Faria’s Capitla A/c

128

1280

1670… (166 more words) …

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