Change in profit sharing ratio 2

A and B were partners in a firm sharing profits and losses equally.with effect from 1st April 2019 they decided to share profits in the ratio 4 :3. Due to change in profit sharing ratio B's gain or sacrifice will be:

• Gain 1/14

• Sacrifice 1/14

• Gain 4/7

• Sacrifice 3/7

A and B were partners in the firm sharing profits or losses in the ratio of 3: 5. with effect from 1st April 2019 they decided to share profits or losses equally. Due to change in profit sharing ratio, A's gain or sacrifice will be:

• Gain 3/8

• Gain 1/8

• Sacrifice 3/8

• Sacrifice 1/8

X ,Y and z are partners in a firm sharing profits and losses in the ratio of 5:3:2. The partners decided to share future profits and losses in the ratio of 3:2:1. Each partners gain or sacrifice due to change in the ratio will be:

• X sacrifice 1/30; Y gain 1/30; Z nil

• X gain 1/30;Y nil; Z sacrifice 1/30

• X nil; Y sacrifice 1/30; Z gain 1/30

• X nil; Y gain 1/30; Z sacrifice 1/30

When Goodwill is not purchased Goodwill account can :

• Never be raised in the books

• Be raised in the books

• Be partially raised in the books

• The raised as per the agreement of the partners

A, B and C are partners sharing profits in the ratio of4:3:2 decided to share profits equally. Goodwill of the firm is valued at rupees 10800. In adjusting entry for goodwill:

• A's capital account Cr. 4,800;B's capital account Cr. 3,600; C's capital account Cr 2,400

• A's capital account Cr 3,600; B's capital account Cr 3,600; C's capital account Cr 3,600

• A's capital account Dr. 1200; C's capital account Cr 1200

• A's capital account Cr 1200; C's capital account Dr. 1200

Out of the following which is not a part of the change in profit sharing ratio

• Determination of sacrificing and gaining ratio

• Accounting of goodwill

• Accounting of reserves, accumulated profits and losses

• Dissolution of partnership firm

Assets are revalued and liabilities are reassessed at the time of change in the profit sharing ratio so that

• Assets and liabilities are shown at their present values

• Gaining partner is not put to an advantage and the sacrificing partner is not put to disadvantage and vice versa

• Both a and b

• Assets and liabilities are shown at their market values

Any change in the relationship of existing partners which result in an end of the existing agreement and enforces making of a new agreement is called:

• Revaluation of partnership

• Reconstitution of partnership

• Realisation of partnership

• None of the above

Revaluation account is a (a)   account.

Assets which physically exist but not shown in the balance sheet are (a)   .