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
Option 1: Profit and Loss Appropriation Account
Option 2: Capital Accounts of all the partners
Option 3: Capitals Accounts of Old Partners
Option 4: Revaluation Account
Correct Answer: Capitals Accounts of Old Partners
Solution : Answer = Capitals Accounts of Old Partners In case of admission of a partner general reserve appearing in the liabilities side of the balance sheet will be distributed among the old partners in their old profit sharing ratio. Hence, the correct option is 3.
Question : At the time of admission of a partner, what will be the effect of the following information? Balance in Workmen compensation reserve Rs. 1,40,000. Claim for workmen compensation Rs. 1,10,000.
Question : At the time of admission of a partner, what will be the effect of the following information? Balance in Workmen compensation reserve Rs. 28,000. Claim for workmen compensation Rs. 20,000.
Question : At the time of admission of a partner, what will be the effect of the following information? Balance in Workmen compensation reserve Rs. 20,000. Claim for workmen compensation Rs. 45,000.
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 : Hari and Kavi are partners sharing profits and losses in the ratio of 3: 2. They admit Ravi as a partner who contributes Rs. 30,000 as his capital for 1/5th share in the profits of the firm. It is decided that after Ravi's admission, the capitals of the Hari and Kavi will
Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile