Question : In the event of change in profit-sharing ratio, profit and loss (Dr) existing in the Balance Sheet is transferred to Capital Accounts of partners in their
Option 1: Sacrificing ratio
Option 2: gaining ratio
Option 3: old profit-sharing ratio
Option 4: new profit-sharing ratio
Correct Answer: old profit-sharing ratio
Solution : Answer = old profit-sharing ratio
When there's a change in the profit-sharing ratio among partners, the existing profit and loss account balance is transferred to the partners' capital accounts according to the old profit-sharing ratio. This ensures that each partner's share of the accumulated profits or losses reflects their previous profit-sharing arrangement. Hence, the correct option is 3.
Question : In the event of change in profit-sharing ratio, profit and loss (credit balance) existing in the Balance Sheet is transferred to Capital Accounts of partners in their
Question : In the event of a change in the profit-sharing ratio, the General Reserve existing in the Balance Sheet is transferred to the Capital Accounts of partners in their
Question : At the time of admission of a partner, the balance of the Investments Fluctuation Reserve, after meeting the loss on revaluation of investments is transferred to _____________of __________in their_____________.
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 :
Accumulated losses on the retirement of a partner are
Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile