Chapter 4: Reconstruction of Partnership Firm

In this course, we discuss the change in profit and loss sharing ratio or distribution ratio between the existing partners in detail.

Details

Let's take a look at the reasons for changes in a partnership:

1. Change in profit and loss sharing ratio between continuing partners.
2. Admission of existing partnership firm.
3. Retirement or death of a partner of an existing partnership firm.


Curriculum

  • Pg 135 Q4 to Q9
    31 m 47 s
  • Pg 139 Q.10
    30 m 41 s
  • Q.11 and Q.12
    23 m 45 s
  • Q.13 and Q.14
    35 m 48 s
  • 1. What is reconstruction of a partnership?
    1 m
  • 2. What is revaluation account?
    1 m
  • 3. What is sacrifice ratio?
    1 m
  • 4. What is gain ratio ?
    1 m
  • 5. How is the consolidated profit distributed?
    1 m
  • 6. To which account revaluation account’s profit-loss is transferred?
    1 m
  • 7. At which value assets-liabilities are shown in the balance sheet after revaluation?
    1 m
  • 8. Which is the other name of revaluation account?
    1 m
  • Practice Quiz
    20 questions
  • 1. Due to which reasons is it possible to make changes in profit and loss with the consent of all partners ?
    1 m
  • 2. In which ratio is the goodwill amount brought by new partner distributed among the old partners?
    1 m
  • 3. If there is decrease in the value of any debt where should it be recorded in Revaluation Account ?
    1 m
  • 4. How is the workers' profit sharing fund distributed among the partners ?
    1 m
  • 5. How are accumulated profit and reserves distributed among partners at the time of reconstruction of partnership firm ?
    1 m
  • 6. What is the other name of Revaluation Account?
    1 m
  • 7. Write the formula for sacrifice ratio.
    1 m
  • 8. Write the formula for gain ratio.
    1 m
  • 9. State the reasons/causes for reconstruction of partnership.
    1 m
  • 10. What is revaluation of assets and liabilities?
    1 m
  • 11. What is reconstruction of partnership?
    1 m
  • 12. On which side of profit and loss adjustment account, discount reserve on debtors (D.R.D.) is to be shown?
    1 m
  • 13. At what price are all assets and liabilities recorded in balance sheet after revaluation?
    1 m
  • 14. After revaluation, is it necessary to prepare partners capital accounts?
    1 m
  • 15. At the time of finding out sacrifice or gain ratio, if we get a negative answer (-), what does it suggest?
    1 m
  • 16. What do the debit balance and credit balance of revaluation account suggest ?
    1 m
  • Chapter 4 Practice Material
    830 KB
  • One Line Answer and Theory
    1.1 MB
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