Muft Shiksha
Update

Muft Shiksha™ एक 100% Free Education Portal है 🇮🇳, जिसका उद्देश्य Class 9–12 के हर विद्यार्थी तक High-Quality Education को पूरी तरह मुफ्त पहुँचाना है। 🇮🇳 हम मानते हैं कि अच्छी शिक्षा किसी student की आर्थिक स्थिति पर निर्भर नहीं होनी चाहिए। 🇮🇳 हर विद्यार्थी को वही Quality Study Material, MCQs, Quizzes, Exam Preparation, Concept-Based Learning और Bilingual Support मिलना चाहिए, जो आमतौर पर महंगी Coaching या Premium Platforms में मिलता है। Muft Shiksha™ 🇮🇳 इसी सोच के साथ बनाया गया है

Subjects
Class 12AccountancyReconstitution - Admission of a PartnerReservesExpert
0 reads0 ratings0 helpful

A, B and C share profits in the ratio 3:3:2. The General Reserve is ₹64,000 and the Advertisement Suspense Account has a balance of ₹24,000. What will be the net credit to C’s account?

Answer and explanation

Correct answer: ₹10,000

The General Reserve gives a credit of ₹64,000, whereas the ₹24,000 debit balance of the Advertisement Suspense Account must be adjusted in the old profit-sharing ratio. Thus, the net amount is ₹64,000 − ₹24,000 = ₹40,000. C’s share in the ratio 3:3:2 is 2/8, so C’s net credit is ₹40,000 × 2/8 = ₹10,000. ₹16,000 represents C’s share of the General Reserve alone and ignores the Advertisement Suspense debit. Exam tip: Add reserves and accumulated profits, deduct suspense or accumulated losses, and then distribute the net amount in the old ratio.

Related tags

General ReserveAdvertisement SuspenseOld Profit Sharing RatioNet CreditReconstitutionReservesReconstitution Admission Of A PartnerAccountancy
सुधार सुझाएँ / Earn

Was this question useful?

No ratings yetWrite a review / Rate this question

Student Reviews

No published reviews yet.

KEEP PRACTISING

10 more MCQs
  1. 1At the time of admission of a new partner to whom is general reserve given?
  2. 2At the time of admission how is credit balance of Profit and Loss Account treated?
  3. 3At the time of admission what does debit balance of Profit and Loss Account show?
  4. 4A and B share profits in the old ratio of 3:2. At the time of admission of a new partner, the general reserve is ₹50,000. How much will A receive from the general reserve?
  5. 5X and Y are partners sharing profits in the old ratio of 4:1. The firm's reserve fund is ₹25,000. On reconstitution of the partnership, what share of the reserve fund will Y receive?
  6. 6Why does the new partner not receive a share of the old General Reserve?
  7. 7Which is the correct journal entry for distributing general reserve?
  8. 8Which entry is made for writing off debit balance of Profit and Loss Account?
  9. 9Profit and Loss Account has credit balance ₹30000. A and B share in 2:1. How much will be credited to B?
  10. 10A firm's Profit and Loss Account has a debit balance of ₹18,000. Partners A and B share profits and losses in the old ratio of 5:4. What amount will be debited to A's Capital Account?
Found an issue? Help improve this questionMy reports and replies

Add Muft Shiksha to your Home Screen

In Safari, tap Share, then Add to Home Screen.