Question : At the time of admission of a partner, Employees Provident Fund is:
Option 1: Distributed to partners in the old profit sharing ratio
Option 2: Distributed to partners in the new profit sharing ratio
Option 3: Adjusted through gaining ratio
Option 4: Should be shown on the liabilities side of new firm Balance Sheet
Correct Answer: Should be shown on the liabilities side of new firm Balance Sheet
Solution : Answer = Should be shown on the liabilities side of the new firm Balance Sheet
At the time of admission of a partner, the Employees Provident Fund (EPF) is a liability of the firm and should be shown on the liabilities side of the new firm's balance sheet. It is not distributed to partners but is retained as a liability of the firm to fulfill its obligations towards employees. Hence, the correct option is 4.
Question : At the time of reconstruction of a partnership due to admission of a new partner, the balance of the Workmen Compensation Reserve will be transferred to:
Question : When goodwill existing in the books is written off at the time of admission of a partner it is transferred to Partners' Capital Accounts in their
Question : Distribution of 'profit and loss (credit) at the time of change in profit sharing ratio of existing partners is shared by ______(i)_____ whereas in case of admission of a partner, it is shared by_____(ii)_____.
Question : Gain/loss on revaluation at the time of change in profit sharing ratio of existing partners is shared by ______(i)_____ whereas in case of admission of a partner, it is shared by _____(ii)_____.
Question : When a new partner is admitted the balance of 'General Reserve' appearing in the Balance Sheet at the time of admission is credited to
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