When there is change in profit sharing ratio amongst existing partners, should the assets and liabilities be revalued? Post category:Accountancy Reading time:1 mins read SOLUTION Yes. Because the profit or loss on revaluation should by credited or debited to the accounts of the partners in their old profit-sharing ratio. 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 PostWhen there is change in the profit-sharing ratio amongst existing partners, does it require adjustment for goodwill? Next PostWhat is the nature of ‘Revaluation Account’? You Might Also Like Under what headings will you show the following items in the Balance Sheet of a Company; (i) Preliminary Expenses; (ii) Acceptances (B/P) September 30, 2022 A, B and C were partners in a firm sharing profits in the ratio of 3 : 2 : 1. They admitted D as a new partner for 1/8th share in the profits, which he acquired 1/16th from B and 1/16th from C. Calculate the new profit-sharing ratio of A, B, C and D. July 29, 2022 Raj Seema started a partnership firm on 1st july , 2018. They agreed that Seema was entitled to a commission of 10% of the net profit after agreed charging Raj’s salary of Rs. 2,500 per quarter and Seema’s commission. The net profit before charging Raj’s salary and Seema’s commission for the year ended 31st March, 2019 was Rs. 2,27,500. Calculate Seema’s commission. (C.B.S.E. 2019, Comptt.) September 26, 2022 Leave a Reply Cancel replyYou must be logged in to post a comment.
Under what headings will you show the following items in the Balance Sheet of a Company; (i) Preliminary Expenses; (ii) Acceptances (B/P) September 30, 2022
A, B and C were partners in a firm sharing profits in the ratio of 3 : 2 : 1. They admitted D as a new partner for 1/8th share in the profits, which he acquired 1/16th from B and 1/16th from C. Calculate the new profit-sharing ratio of A, B, C and D. July 29, 2022
Raj Seema started a partnership firm on 1st july , 2018. They agreed that Seema was entitled to a commission of 10% of the net profit after agreed charging Raj’s salary of Rs. 2,500 per quarter and Seema’s commission. The net profit before charging Raj’s salary and Seema’s commission for the year ended 31st March, 2019 was Rs. 2,27,500. Calculate Seema’s commission. (C.B.S.E. 2019, Comptt.) September 26, 2022