Question
Q1. Answer the following at the time of change in PSR: (Answer all) a) P, Q and R are partners in a firm. They decided
Q1. Answer the following at the time of change in PSR: (Answer all)
a) P, Q and R are partners in a firm. They decided to change their profit-sharing ratio from 2:2:1 to 3:1:1. On that date Investment Fluctuation Reserve appears in the books at Rs. 1,00,000, when Investments (market value Rs. 1,50,000) appear at Rs. 2,00,000. What amount will be distributed among the partners?
- Rs. 1,00,000 in old ratio
- Rs. 50,000 in new ratio
- Rs. 1,00,000 in new ratio
b) A, B and C are partners in a firm. They decided to change their profit-sharing ratio. As a result of change in profit-sharing ratio, A sacrifices 1/14, B gains 1/14, while share of C does not change.
| Book Values (Rs.) | Revised Values (Rs.) |
Stock of goods | 40,000 | 50,000 |
Land and building | 6,00,000 | 7,30,000 |
Which of the following is true?
- Bs account will be debited with Rs. 1,00,000
- As account will be debited with Rs. 1,00,000
- As account will be debited with Rs. 10,000
c) P, Q and R are partners in a firm. They decided to change their profit-sharing ratio from 9:6:5 to 2:1:1. On that date, Workmen Compensation Reserve appears in the books at Rs. 4,50,000, when there is a claim of Rs. 50,000 against it. What amount will be distributed among the partners?
- Rs. 4,50,000 in old ratio
- Rs. 50,000 in sacrificing ratio
- Rs. 4,00,000 in old ratio
Please answer all or do not answer at all
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