Question : If the net result of revaluation is profit of Rs 12,000 and partners do not want to show assets and liabilities at new values then.
Option 1: Revaluation a/c is not prepared
Option 2: Statement showing net result for revaluation will be prepared
Option 3: Adjustment entry will be passed
Option 4: All of the above
Correct Answer: Adjustment entry will be passed
Solution : Answer = Adjustment entry will be passed.
If the partners decide not to show assets and liabilities at their new values after a revaluation resulting in a profit of Rs 12,000, adjustment entries will be passed to allocate the profit among the partners. This ensures that the profit is appropriately distributed without preparing a formal revaluation account. Hence, the correct option is 3.
Question : If partners decided not to change book value of assets and liabilities on admission of new partners, then account prepared to adjust profit and loss arising on account of change in value of assets and liabilities is
Question : A, B and C are partners in 3 : 4 : 2. B wants to retire from the firm. The profit on revaluation on that date was Rs.36,000. New ratio of A and C is 5 : 3. Profit on revaluation will be distributed as :
Question : X Y and Z are partners in 3: 4: 2. B wants to retire from the firm. The profit on revaluation on that date was Rs. 36,000. New ratio of A and C is 5: 3. Profit on revaluation will be distributed as:
Question : If Memorandum revaluation account is prepared, Assets and liabilities will appear in balance sheet at
Question : Credit side of revaluation account Rs 60,000 and debit side of revaluation account Rs 40,000 . Entry for the balance will be .
Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile