A and B are partners sharing profits in the ratio of 2 : 3. Their Balance Sheet shows machinery at Rs. 4,00,000; stock at Rs.80,000 and Debtors at Rs.3,20,000. C is admitted and new profit sharing ratio is agreed at 6 : 9 : 5. Machinery is revalued at Rs.3,40,000 and a provision is made for doubtful debts @ 2.5%. A’s share in loss on revaluation amounted to Rs.20,000. Revalued value of stock will be: (a) Rs.98,000 (b) Rs. 1,00,000 (c) Rs. 60,000 (d) Rs.62,000
Partnership Accounting
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.
Partner Admission and Withdrawal
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings of a partner, etc.
A and B are partners sharing profits in the ratio of 2 : 3. Their
at Rs. 4,00,000; stock at Rs.80,000 and Debtors at Rs.3,20,000. C is admitted and new profit sharing
ratio is agreed at 6 : 9 : 5. Machinery is revalued at Rs.3,40,000 and a provision is made for doubtful
debts @ 2.5%. A’s share in loss on revaluation amounted to Rs.20,000. Revalued value of stock will
be:
(a) Rs.98,000 (b) Rs. 1,00,000 (c) Rs. 60,000 (d) Rs.62,000
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