Why are “Reserves & Surplus” distributed at the time of reconstitution of the firm? Post category:Accountancy Reading time:1 mins read SOLUTION These belong to old partners. As such, these should be distributed amongthem. Please Share This Share this content Opens in a new window X Opens in a new window Facebook Opens in a new window Pinterest Opens in a new window LinkedIn Opens in a new window Viber Opens in a new window VK Opens in a new window Reddit Opens in a new window Tumblr Opens in a new window Viadeo Opens in a new window WhatsApp Read more articles Previous PostWhat is the nature of ‘Revaluation Account’? Next PostGive the accounting entry for unrecorded assets in case of reconstitution of a partnership firm. (C.B.S.E. 2019, Delhi) You Might Also Like Following differences have arisen among P, Q and R. State who is correct in each case: (a) P used Rs. 20,000 belonging to the firm and made a profit of Rs. 5,000. Q and R want the amount to be given to the firm? (b) Q used Rs. 5,000 belonging to the firm and suffered a loss of Rs. 1000. He wants the firm to bear the loss? (c) P and Q want to purchase goods from A Ltd., R does not agree? (d) Q and R want to admit C as partner, P does not agree? (e) R had given loan of Rs. 1,00,000 to firm and demands interest @ 10% p.a. P and Q do not want to pay the interest. July 20, 2022 Why are assets and liabilities revalued at the time of retirement of a partner? September 27, 2022 What is meant by ‘Solvency of Business’? (C.B.S.E. 2016) October 1, 2022 Leave a Reply Cancel replyYou must be logged in to post a comment.
Following differences have arisen among P, Q and R. State who is correct in each case: (a) P used Rs. 20,000 belonging to the firm and made a profit of Rs. 5,000. Q and R want the amount to be given to the firm? (b) Q used Rs. 5,000 belonging to the firm and suffered a loss of Rs. 1000. He wants the firm to bear the loss? (c) P and Q want to purchase goods from A Ltd., R does not agree? (d) Q and R want to admit C as partner, P does not agree? (e) R had given loan of Rs. 1,00,000 to firm and demands interest @ 10% p.a. P and Q do not want to pay the interest. July 20, 2022