Match List-I with List-II and select the

CUET Preparation Today

Start Free Mocks

Home Questions 92E57VCPUR

Target Exam

CUET

Subject

Accountancy

Chapter

Admission of a Partner

Question:

Match List-I with List-II and select the correct answer using the codes given the lists.

List-I	List- II
A)Partner's Current account	1) Dissolution of partnership firm
B)Goodwill account	2) Admission of a partner
C)Partner's Drawing account	3) Fixed capitals of partners
D)Realisation account	4)Goods taken by a partner for self consumption

Options:

A-4,B-2,C-3,D-1

A-2,B-1,C-3,D-4

A-3,B-2,C-4,D-1

A-3,B-1,C-4,D-2

Correct Answer:

A-3,B-2,C-4,D-1

Explanation:

In case of partnership type of ownership in a business, partner current account is prepared when capital is fixed. Transactions such as drawings, salary, and interest on capital and drawings are recorded.
In case of Admission of Partner. The incoming partner brings in some amount as his share of Goodwill or Premium to compensate the existing partners for the loss of their share in the future profits of the firm.
A drawing account is an accounting record maintained to track money withdrawn from a business by its owners. A drawing account is used primarily for businesses that are taxed as sole proprietorships or partnerships.
Realisation account refers to an account opened by the firm when it goes to dissolution to record the profit made from the sale of assets and loss suffered on the settlement of liabilities.