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Tina and Mira were partners sharing Profit and Losses in 5 : 2 with affect from 1st April 2021, they decided to share future profits equally. There was an unrecorded liability and an unrecorded asset. Expenses were incurred by the firm to give effect to the change in profit sharing ratio. The partner Tina had to be paid remuneration for the services rendered by her relating to reconstitution of the firm .Answer the following questions:1). When remuneration is paid by the firm to Tina and expenses are borne by the firm, which of the following journal is correct. a. Revaluation a/c Dr. ; Tina’s capital a/c Cr. b. Tina’s capital a/c Dr.; Revaluation a/c Cr. c. Cash a/c Dr.; Tina’s capital a/c Cr. d. None of these 2) When expenses were to be borne by Tina but are paid by the firm, which of the following journal is correct. a. Revaluation a/c Dr.; Tina’s capital a/c Cr. b. Tina’s capital a/c Dr.; Cash/Bank a/c Cr. c. Cash/Bank a/c Dr.; Tina’s capital a/c Cr d. None of these 3) When expenses are incurred and paid by the firm, which of the following journal is correct. a. Revaluation a/c Dr.; Tina’s capital a/c Cr. b. Tina’s capital a/c Dr.; Cash/Bank a/c Cr. c. Revaluation a/c Dr.; Cash/Bank a/c Cr. d. None of these 4) Unrecorded liabilities and Unrecorded assets are recorded in a. Revaluation a/c ;where they are credited and debited respectivelyb. Revaluation a/c ;where they are debited and credited respectively c. Partners capital a/c ; where they are credited and debited respectively d. Partners capital a/c ; where they are credited and debited respectively

Answer»

Correct option is 

1 a. Revaluation a/c Dr. ; Tina’s capital a/c Cr.

2 b. Tina’s capital a/c Dr.; Cash/Bank a/c Cr.

3 c. Revaluation a/c Dr.; Cash/Bank a/c Cr.

4 d. Partners capital a/c ; where they are credited and debited respectively



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