DIRECTION Analyse the following case study and answer the questions 1 to 4 on the basis of the same.
Ram and Laxman are partners in a firm with equal ratio.
Adjustments
(i) Bharat comes for 1/5th share and brings capital ₹ 2,00,000 and premium ₹ 40,000 out of ₹ 60,000.
(ii) New ration 2:2:1.
(iii) ₹ 20,000 included in creditors are not likely to be paid.
(iv) Patents are valueless.
(v) 10% provision for doubtful debts on debtors out of general reserve.
1) What is the profit/loss of revaluation account ?
(a) Profit ₹ 60,000
(b) Loss ₹ 60,000
(c) Profit ₹ 20,000
(d) Loss ₹ 20,000
2. If the old ratio is equal and new ratio (between old partners) is also equal, then what would be the sacrificing ratio?
(a) 1:2
(b) 2:1
(c) 1:1
(d) Can’t be determined
3. What was the total of bank account at the end of transactions?
(a) ₹ 3,40,000
(b) ₹ 3,20,000
(c) ₹ 2,80,000
(d) Can’t be determined
4. By how much amount was Laxman’s capital credited on account of General Reserve ?
(a) ₹ 80,000
(b) ₹ 68,000
(c) ₹ 40,000
(d) ₹ 34,000
