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True OR False Type Questions: 3:-Change IN Profit Sharing Ratio Among Existing Partners

This document contains a chapter on changes in profit sharing ratios among existing partners with 15 true/false questions and their answers. It discusses topics like registration of partnerships, sleeping partners, interest charges, transferring profits to reserves, sharing of profits and losses, effects of changing ratios, revaluation accounts, and sacrificing partners' capital. The key teaches that changing profit sharing ratios changes the relationship between existing partners but does not reconstitute the partnership firm. It also notes that unrecorded assets found upon reconstitution represent a gain for existing partners.

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1K views2 pages

True OR False Type Questions: 3:-Change IN Profit Sharing Ratio Among Existing Partners

This document contains a chapter on changes in profit sharing ratios among existing partners with 15 true/false questions and their answers. It discusses topics like registration of partnerships, sleeping partners, interest charges, transferring profits to reserves, sharing of profits and losses, effects of changing ratios, revaluation accounts, and sacrificing partners' capital. The key teaches that changing profit sharing ratios changes the relationship between existing partners but does not reconstitute the partnership firm. It also notes that unrecorded assets found upon reconstitution represent a gain for existing partners.

Uploaded by

abi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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CHAPTER 3:- CHANGE IN PROFIT SHARING RATIO

AMONG EXISTING PARTNERS

TRUE OR FALSE TYPE QUESTIONS


Q.NO. QUESTIONS
1 Registration of partnership is optional.
A. True B. False
2 Sleeping partner are those who do not take part in conduct of the
business. A.True B.False
3 Interest as a charge means interest on capital is to be allowed whether the firm has
earned profit or incurred loss.
A.True B.False
4 The net profit of the firm is Rs. 8,00,000 partners are entitled to salary Rs. 1,00,000 p.a.
if 10% of divisible profit to be transferred to general reserve then amount will be Rs.
80,000.
A.True B.False
5 Unless otherwise specified, the partners have to share profits and losses in proportion of
the capital contributed by them.
A.True B.False
6 Change in existing profit sharing ratio will change the relationship among the
existing partners. (True/False)
7 Revaluation account is Personal account. (True/False)
8 Sacrificing partners capital is debited when there is loss. (True/False)
9 Decrease in the creditors will be shown on the debit side of Revaluation account.
(True/False)
10 Deferred revenue expenditure is partiallly written off in old ratio at the time of
change in profit sharing ratio. (True/False)
11 At the time of change in profit sharing ratio among the existing partners , an
unrecorded liability is credited to revaluation account. (T/F)
12 Change in profit sharing ratio of existing partners does not amount to
reconstitution of the partnership firm. (T/F)
13 At the time of change in profit sharing ratio, profit on revaluation is credited to
existing partners’ capital accounts in old ratio.(T/F)
14 Recording of an unrecorded asset on the reconstitution of partnership firm is a
gain to the existing partners. (T/F)
15 Sacrificing Ratio = New Ratio – Old Ratio (T/F)

KVS ZIET BHUBANESWAR 12/10/2021 Page 1


ANSWER KEY
Q.NO ANSWER
1 True
2 True
3 True
4 False
5 Fasle
6 True
7 False
8 True
9 False
10 False
11 False
12 False
13 True
14 True
15 False

PREPARED BY THE PGTs ( COMMERCE ) OF BHUBANESWAR, GUWAHATI,


KOLKATA, RANCHI, SILCHAR AND TINSUKIA REGIONS.

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