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Home Questions VD7BR23T2V
Target Exam

CUET

Subject

-- Accountancy Part A

Chapter

Admission of a Partner

Question:

Match list I with list II and choose the correct ans from the options given below:

LIST 1 LIST 2
A) Interest on Capital I) Admission of partner
B) Gaining Ratio II) Profit/loss in the old profit-sharing ratio
C) Sacrificing ratio III) Continuing partners
D) Revaluation of assets and liabilities IV) When partnership deed specifically provide for it

 

Options:

A-I, B-II, C-III, D-IV

A-III, B-IV, C-I, D-II

A-II, B-III, C-IV, D-I

A-IV, B-III, C-I, D-II

Correct Answer:

A-IV, B-III, C-I, D-II

Explanation:

The correct answer is option 4- A-IV, B-III, C-I, D-II.

LIST 1 LIST 2
A) Interest on Capital IV) When partnership deed specifically provide for it
B) Gaining Ratio III) Continuing partners
C) Sacrificing ratio I) Admission of partner
D) Revaluation of assets and liabilities II) Profit/loss in the old profit-sharing ratio

 

* Interest on Capital is provided only when the partnership deed specifically provide for it and the firm earns profit. In case of loss no interest on capital is provided.

* Gaining ratio is calculated at the time of retirement or death of a partner because remaining partners gains in the profit due to the exist of old partner.

* Sacrificing ratio is calculated at the time of admission of a new partner because old partners sacrifice some of their share in profit in favor of new partner.

* Revaluation of assets and liabilities are done at the time of both admission and retirement of a partner. The profit or loss arising on revaluation is distributed between old partners in their old profit sharing ratio.

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