Question : Which of the following statement is in correct with respect of adjustment of capitals?
Option 1: Ascertain Adjusted Capital of remaining partners (after all adjustments).
Option 2: Calculate Proportionate Capital of remaining partners on the basis of total capital of the new firm and new profit-sharing ratio
Option 3: Find Surplus Capital/Deficit Capital of each continuing partner by comparing Proportionate Capital and Present Adjusted Capital.
Surplus Capital: When Present Adjusted Capital is more than the proportionate Capital.
Deficit Capital: When Present Adjusted Capital is less than the Proportionate Capital.
Option 4: All of the above
Correct Answer: All of the above
Solution : Answer = All of the above.
All the statements provided are correct in the context of adjusting capitals in a partnership. They outline the steps involved in determining the adjusted capital of remaining partners, calculating proportionate capital, and identifying surplus or deficit capital based on the comparison of present adjusted capital and proportionate capital.
Hence, the correct option is 4.
