Question : When Present Adjusted Capital (after adjustments) is less than the Proportionate Capital: choose the correct journal entry.
Option 1: Cash A/c or Bank A/c ...Dr. To Concerned Partner's Capital A/c
Option 2: Concerned Partner's Current A/c ...Dr. To Concerned Partner's Capital A/c
Option 3: Either 1 or 2
Option 4: None of the above
Correct Answer: Either 1 or 2
Solution : Answer = Either 1 or 2
When the Present Adjusted Capital (after adjustments) is less than the Proportionate Capital, the correct journal entry would be either: a) Debiting Cash A/c or Bank A/c and crediting Concerned Partner's Capital A/c, or, b) Debiting Concerned Partner's Current A/c and crediting Concerned Partner's Capital A/c. Hence, the correct option is 3.
Question : Choose the incorrect journal entry. When Present Adjusted Capital (after adjustments) is more than the Proportionate Capital:
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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