Question : Choose the correct journal entry If the due amount is paid to the retiring partner in lump sum on the date of retirement
Option 1: Retiring Partner's Capital A/c ...Dr. [Due Amount] To Cash/BankA/c
Option 2: Cash/BankA/c ...Dr. To Retiring Partner's Capital A/c
Option 3: Interest A/C........Dr To Retiring Partner's Loan A/c
Option 4: None of the above
Correct Answer: Retiring Partner's Capital A/c ...Dr. [Due Amount] To Cash/BankA/c
Solution : Answer (1) Retiring Partner's Capital A/c ...Dr. [Due Amount] To Cash/BankA/c Hence, the correct option is 1.
Question : If retiring partner's Capital Account after adjustments shows 'Debit Balance', that much amount is receivable from the retiring partner. The entry is:
Question : Choose the incorrect journal entry. When Present Adjusted Capital (after adjustments) is more than the Proportionate Capital:
Question : Realisation expenses of Rs 10,000 were paid by the firm. Choose the correct journal entry.
Question : When Present Adjusted Capital (after adjustments) is less than the Proportionate Capital: choose the correct journal entry.
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