Question : Choose the incorrect journal entry. When Present Adjusted Capital (after adjustments) is more than the Proportionate Capital:
Option 1: Concerned Partner's Capital A/c ...Dr. To Cash A/c or Bank A/c
Option 2: Concerned Partner's Capital A/c ...Dr. To Concerned Partner's Current A/c
Option 3: Cash A/c or Bank A/c or Concerned Partner's Current A/c.....Dr To Concerned Partner's Capital A/c .
Option 4: None of the above
Correct Answer: None of the above
Solution : Answer = None of the above.
All entries provided are correct. Each reflects an adjustment made when the Present Adjusted Capital exceeds the Proportionate Capital of a partner. These entries ensure proper accounting treatment and reflect the necessary adjustments in the partner's capital accounts. Hence, the correct option is 4.
Question : When Present Adjusted Capital (after adjustments) is less than the Proportionate Capital: choose the correct journal entry.
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 : Realisation Expenses, 15,000 were paid by the firm on behalf of a partner. The Journal Entry passed will be:
Question : Realisation expenses of Rs 10,000 were paid by the firm. Choose the correct journal entry.
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