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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?

  1. Rs. 1,00,000 in old ratio
  2. Rs. 50,000 in new ratio
  3. 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?

  1. Bs account will be debited with Rs. 1,00,000
  2. As account will be debited with Rs. 1,00,000
  3. 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?

  1. Rs. 4,50,000 in old ratio
  2. Rs. 50,000 in sacrificing ratio
  3. Rs. 4,00,000 in old ratio

Please answer all or do not answer at all

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