i. A fund created by the partnership firm out of profit as a precautionary measure. ii. The ratio in which the old partners share the amount brought

Question

Write a word/phrase/term which can substitute each of the following statements.

i. A fund created by the partnership firm out of profit as a precautionary measure.

ii. The ratio in which the old partners share the amount brought in by the new partner towards goodwill.

iii. The ratio in which the Goodwill A/c may be written off after admission of a partner.

iv. An account was opened for the Revaluation of Assets and Liabilities.

v. Debit balance of Revaluation Account.

vi. An amount by which the actual capital of a partner exceeds his Proportionate capital.

vii. An amount by which the proportionate capital of a partner exceeds his actual capital.

Answer 1

i. General Reserve/Reserve Fund

ii. Sacrifice Ratio

iii. New Profit and Loss Ratio

iv. Profit and Loss Adjustment A/c or Revaluation A/c

v. Loss on revaluation of assets and liabilities

vi. Surplus capital/Excess capital

vii. Deficit or Deficiency in capital