State the ratio in which the partners share the gain or loss on revaluation of assets and liabilities. Post category:Accountancy Reading time:1 mins read SOLUTION The partners share the gain or loss on revaluation of assets and liabilities 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 PostState any two reasons for the preparation of ‘Revaluation Account’ on the admission of a partner. Next PostWhat are accumulated profits? You Might Also Like List any two financing activities that will result into outflow of cash. October 4, 2022 When there is change in profit sharing ratio amongst existing partners, should the assets and liabilities be revalued? September 26, 2022 The partnership between A and B was dissolved on 31st March, 2019. On that date the respective credits to the capitals were A − Rs. 1,70,000 and B − Rs. 30,000. Rs. 20,000 were owed by B to the firm; Rs. 1,00,000 were owed by the firm to A and Rs. 2,00,000 were due to the Trade Creditors. Profits and losses were shared in the proportions of 2/3 to A, 1/3 to B. The assets represented by the above stated net liabilities realise Rs. 4,50,000 exclusives of Rs. 20,000 owed by B. The liabilities were settled at book figures. Prepare Realisation Account, Partners’ Capital Accounts and Cash Account showing the distribution to the partners. July 26, 2022 Leave a Reply Cancel replyYou must be logged in to post a comment.
When there is change in profit sharing ratio amongst existing partners, should the assets and liabilities be revalued? September 26, 2022
The partnership between A and B was dissolved on 31st March, 2019. On that date the respective credits to the capitals were A − Rs. 1,70,000 and B − Rs. 30,000. Rs. 20,000 were owed by B to the firm; Rs. 1,00,000 were owed by the firm to A and Rs. 2,00,000 were due to the Trade Creditors. Profits and losses were shared in the proportions of 2/3 to A, 1/3 to B. The assets represented by the above stated net liabilities realise Rs. 4,50,000 exclusives of Rs. 20,000 owed by B. The liabilities were settled at book figures. Prepare Realisation Account, Partners’ Capital Accounts and Cash Account showing the distribution to the partners. July 26, 2022