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

Old partners A and B share profits and losses in the ratio of 5:3. The General Reserve is ₹80,000 and the accumulated loss is ₹1,04,000. What will be the net effect on A’s Capital Account on the admission of a new partner?

Answer and explanation

Correct answer: ₹15,000 debit

The General Reserve creates a credit effect of ₹80,000, whereas the accumulated loss creates a debit effect of ₹1,04,000. Thus, the net debit effect is ₹1,04,000 − ₹80,000 = ₹24,000. A’s share in the old ratio is ₹24,000 × 5/8 = ₹15,000 debit. Therefore, option A is correct. Exam tip: offset the reserve against the accumulated loss first, and then distribute the net balance in the old profit-sharing ratio.

Related tags

General ReserveAccumulated LossAdmission Of PartnerOld RatioCapital AdjustmentReservesReconstitution 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.