Change in Profit Sharing Ratio (Quiz2)

Whenever Revaluation account is prepared, the journal entry for unrecorded assets is

Any change in the relationship of existing partners which results in an end of the existing agreement and enforces making of a new agreement is called

‘Gaining Ratio’ means :

At the time of reconstitution of a partnership firm, recording of an unrecorded liability will lead to:

Revaluation of assets at the time of reconstitution is necessary because their present value may be different from their:

Anubhav, Shagun and Pulkit are partners in a firm sharing profits and losses in the ratio of 2:2:1. On 1st April 2021, they decided to change their profit-sharing ratio to 5:3:2. On that date, debit balance of Profit & Loss A/c ₹30,000 appeared in the balance sheet and partners decided to pass an adjusting entry for it. Which of the undermentioned options reflect correct treatment for the above treatment?

Samiksha, Arshiya and Divya were partners in a firm sharing profits and losses in the ratio of 5: 3: 2. With effect from 1st April 2022, they agreed to share future profits and losses in the ratio of 2: 5: 3. Their Balance Sheet showed a debit balance of ₹ 50,000 in the Profit and Loss Account and a balance of ₹ 40,000 in the Investment Fluctuation Fund. The market value of an investment is ₹ 30,000 against the book value of ₹ 50,000. Partners have decided, not to show revised valued in the balance sheet and to pass an adjusting entry for it. Which of the following is the correct treatment of the above?

Any change in the relationship of existing partners, which results in an end of the existing agreement and enforces making of a new agreement is called

X, Y and Z are partners sharing profit in the ratio of 1:2:3. On April 1, 2021, they decided to share the profits equally. On that date there was a credit balance of ₹ 1,20,000 in their Profit & Loss Account and a balance of ₹ 1,80,000 in General Reserve Account. Instead of closing the General Reserve Account and Profit and Loss Account, it is decided to record an adjustment entry which will be

The ratio in which a partner surrenders his share of profit in favour of a partner is known as