WorksheetsChange in profit sharing ratio 2
Total questions: 10
Worksheet time: 13mins
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) .
