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
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1. What is reconstruction of a partnership?1 m
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2. What is revaluation account?1 m
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3. What is sacrifice ratio?1 m
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4. What is gain ratio ?1 m
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5. How is the consolidated profit distributed?1 m
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6. To which account revaluation account’s profit-loss is transferred?1 m
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7. At which value assets-liabilities are shown in the balance sheet after revaluation?1 m
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8. Which is the other name of revaluation account?1 m
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Practice Quiz20 questions
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1. Due to which reasons is it possible to make changes in profit and loss with the consent of all partners ?1 m
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2. In which ratio is the goodwill amount brought by new partner distributed among the old partners?1 m
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3. If there is decrease in the value of any debt where should it be recorded in Revaluation Account ?1 m
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4. How is the workers' profit sharing fund distributed among the partners ?1 m
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5. How are accumulated profit and reserves distributed among partners at the time of reconstruction of partnership firm ?1 m
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6. What is the other name of Revaluation Account?1 m
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7. Write the formula for sacrifice ratio.1 m
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8. Write the formula for gain ratio.1 m
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9. State the reasons/causes for reconstruction of partnership.1 m
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10. What is revaluation of assets and liabilities?1 m
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11. What is reconstruction of partnership?1 m
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12. On which side of profit and loss adjustment account, discount reserve on debtors (D.R.D.) is to be shown?1 m
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13. At what price are all assets and liabilities recorded in balance sheet after revaluation?1 m
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14. After revaluation, is it necessary to prepare partners capital accounts?1 m
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15. At the time of finding out sacrifice or gain ratio, if we get a negative answer (-), what does it suggest?1 m
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16. What do the debit balance and credit balance of revaluation account suggest ?1 m
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Chapter 4 Practice Material830 KB
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