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On revaluation, the increase in the value of assets leads to _________. - Accountancy

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प्रश्न

On revaluation, the increase in the value of assets leads to _________.

पर्याय

  • Gain

  • Loss

  • Expense

  • None of these

MCQ
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उत्तर

On revaluation, the increase in the value of assets leads to Gain.

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पाठ 5: Admission of a partner - Multiple Choice questions [पृष्ठ १७१]

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सामाचीर कलवी Accountancy [English] Class 12 TN Board
पाठ 5 Admission of a partner
Multiple Choice questions | Q I 2. | पृष्ठ १७१

संबंधित प्रश्‍न

Kalpana and Kanika were partners in a firm sharing profits in the ratio of 3 : 2. On 1st April, 2013 they admitted Karuna as a new partners for 1/5th share in the profits of the firm. The Balance Sheet of Kalpana and Kanika as on 1st April, 2013, was as follows:

 Balance Sheet of Kalpana and Kanika as on 1st April, 2013

                     Liabilities

Amount

Rs

        Assets

Amount

Rs

Capitals

 

Land and Building

2,10,000

Kalpana

4,80,000

 

Plant

2,70,000

Kanika

2,10,000

6,90,000

Stock

2,10,000

General Reserve

60,000

Debtors

1,32,000

 

Workmen’s Compensation Fund

1,00,000

Less: Provision

–12,000

1,20,000

Creditors

90,000

Cash

1,30,000

 

 

 

 

 

9,40,000

 

9,40,000

 

 

 

 

It was agreed that
(i) the value of Land and Building will be appreciated by 20%.
(ii) the value of plant be increased by Rs 60,000.
(iii) Karuna will bring Rs 80,000 for her share of goodwill premium.
(iv) the liabilities of Workmen's Compensation Fund were determined at Rs 60,000.
(v) Karuna will bring in cash as capital to the extent of `1/5`th share of the total capital of the new firm.

Prepare Revaluation Account, Partner's Capital Accounts and Balance Sheet of the new firm. 


The gradual and permanent decrease in the value of fixed assets due to any cause.


Select the most appropriate answer from the alternative given below and rewrite the sentence.

Account is debited when unrecorded liability is brought into business.


Answer the following question in one sentence.
What shows credit balance of revaluation account ?


Shanti, Samadhan and Sangarsh were sharing profits and losses in the ratio of 7: 5: 4. Their balance sheet as on 31st .03.2013 was as follows:

Balance Sheet as on 31st March,2013.
Liabilities
Amount
Assets
Amount
Capitals:
 
Furniture
17000
Shanti
23000
Machinery
18000
Samadhan
15000
Building
16000
Sangharsh
12000
Cash
37000
Bills Payable
4000
   
Creditors
8000
   
Loan
10000
   
General Reserve
16000
   
       
 
88000
 
88000
Sangharsh died on 30 th June, 2013, and the following adjustments were agreed as per deed.
 
(1) Furniture, Machinery and Building are to be revalued at Rs. 16,700, Rs. 16,200, Rs. 30,100 respectively.
 
(2) Sangharsh’s share in goodwill is to be valued from firm’s goodwill which was valued at two times of the average profit of last three years.
Profits of the last three years - Rs. 30,000, Rs. 25,000, Rs. 20,000.
 
(3) His profit up to the date of death is to be calculated on the basis of profit of last year.
 
(4) Sagharsh was entitled to get a salary of Rs. 800 per month.
 
(5) Interest on capital at 10% to be allowed.
 
(6) Sangharsh’s drawing up to the date of death was Rs. 600 per month.
 
Prepare : (i) Sangarsh’s capital account showing amount payable to his executor.
 
(ii) Give working notes for share of goodwill and profit.

Find the Odd one.


Find the Odd one.


What does the excess of debit over credits in the Profit and Loss Adjustment Account indicate?


Ram and Shyam were in partnership sharing profits and Losses in the proportion of 3 : 1 respectively. Their Balance sheet as on 31st March, 2020 stood as follows:

Balance Sheet as on 31st March, 2020
Liabilities Amount (₹) Assets Amount (₹)
Sundry Creditors   80,000 Cash 80,000
Bills Payable   42,000 Sundry Debtors 64,000
Capital Accounts:     Land and Building 32,000
Ram 1,20,000 1,60,000 Stock 40,000
Shyam 40,000 Plant and Machinery 60,000
General Reserve   16,000 Furniture 22,000
    2,98,000   2,98,000

They admit Bharat into partnership on 1st April 2020. The term is that

  1. He shall have to bring in cash ₹ 40,000 as his Capital for 1/5th share in future profit and ₹ 20,000 as his share of Goodwill.
  2. A provision for 5% doubtful debts to be created on sundry debtors.
  3. Stock should be appreciated by 5% and Land and Building be appreciated by 20%.
  4. Furniture to be depreciated by 20%.
  5. Capital Accounts of all partners be adjusted in their new profit-sharing ratio through Cash Account.

Prepare:

  1. Profit and Loss Adjustment Account
  2. Partners' Capital Account
  3. Balance Sheet of the new firm.

Hansa and Kavya share profits and losses in the ratio of 3: 2 respectively. Their Balance Sheet as on 31st March, 2023 was as under:

Balance Sheet as on 31st March, 2023
Liabilities Amount (₹) Assets Amount (₹)
Bills Payable 90,000 Cash at Bank 1,500
Reserve fund 60,000 Sundry Debtors 1,33,500
Capital A/c:   Stock 51,000
Hansa 2,16,000 Furniture 72,000
Kavya 1,44,000 Plant 1,80,000
    Building 72,000
  5,10,000   5,10,000

They admit Munir into partnership on 1-4-2023. The terms being that:

(1) He shall have to bring in ₹ 1,20,000 as his Capital for 1/4th share in future profits.

(2) Value of Goodwill of the firm is to be fixed at the average profits for the last three years.

The Profits were:

2019-20 ₹ 96,000
2020-21 ₹ 1,62,000
2021-22 ₹ 1,47,000

(3) Reserve for Doubtful debts is to be created at ₹ 3,000.

(4) Closing stock is valued at ₹ 45,000.

(5) Plant and Building is to be depreciated by 5%.

Prepare Profit and Loss Adjustment Alc, Capital Accounts of Partners and Balance Sheet of the new firm.


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