Partnership

Final Answer

The capital accounts of partners will always show a Credit balance under the fixed capital account method.

When a new partner is admitted into a partnership, they acquire certain rights within the firm. The two primary rights of a newly admitted partner are:

• Right to share assets of the partnership firm:
  The newly admitted partner has a right to claim a share in the assets of the firm, which includes the right to participate in the distribution of assets upon dissolution or as per the partnership agreement.
• Right to share profits of the partnership firm:
  The new partner has a right to share the profits of the firm according to the agreed profit-sharing ratio.

However, the newly admitted partner does not automatically have a right to claim:

• Interest on capital: This is usually provided as per the partnership agreement but is not a fundamental right for a new partner.
• Remuneration for firm’s work: This is usually paid to working partners, but it is not a guaranteed right for all partners.

The correct rights of the newly admitted partner are (A) Right to share assets of the partnership firm and (D) Right to share profits of the partnership firm.

Thus, the correct answer is (A): (A) and (D) only.

Step 1: Preparation of Revaluation Account
At the time of death of a partner, the first step is to revalue the assets and liabilities of the firm. This is done by preparing the Revaluation Account to calculate the gain or loss on revaluation.
Step 2: Calculation of Revaluation Gain/Loss
After preparing the Revaluation Account, the gain or loss is calculated and transferred to partners capital accounts in their profit sharing ratio.
Step 3: Calculation of Amount Payable to Executor
Next, the amount due to the deceased partner's executor is calculated based on the deceased partner's capital account balance, share of profits, and adjustments for revaluation.
Step 4: Payment to Executor
After calculation, the firm pays the amount due to the executor.
Step 5: Balance of Executor's Loan Account
Finally, the balance in Executor's Loan Account (if any) is determined and recorded.
Step 6: Conclusion
Hence, the correct sequence is: .

Step 1: Default rules under Indian Partnership Act (1932)
In the absence of a partnership deed, the Indian Partnership Act governs the rights and duties of partners.
Step 2: Interest on partners' loan
According to Section 13 of the Act, partners are entitled to interest on loans given to the firm at 6\% per annum if there is no agreement to the contrary. Thus, partners must be paid interest on their loans @ 6 % p.a. by default.
Step 3: Interest on capital
Interest on partners' capital is not payable unless agreed upon. So (a) is incorrect.
Step 4: Profit sharing
Profits are shared equally among partners in absence of an agreement, not in ratio of capital. So (c) is incorrect.
Step 5: Interest on drawings
Charging interest on drawings requires an agreement. No default rule exists. Hence, (d) is incorrect.
Step 6: Conclusion
Therefore, statement (b) is correct under the default provisions.

Explanation:

To solve the given matching problem, we need to correctly pair each item in List I with its corresponding description in List II. The solution requires us to recognize the appropriate relation based on the context or definitions related to Accountancy.

By examining both lists, we identify the following correlations:

• A matches with Description II.
• B matches with Description III.
• C matches with Description I.
• D matches with Description IV.

Thus, aligning these pairs with the options provided in the question, we find that the correct matching order is A-II, B-III, C-I, D-IV.

To solve the problem, we need to find the deficiency that others will bear after Mohit's guaranteed profit, and then divide this deficiency in the ratio 3:1.

1. Understanding the profit distribution:
Total profit earned by the firm = ₹90,000
Mohit's guaranteed share = ₹40,000 (for his share)

2. Calculating Mohit's actual share:
Mohit's actual share based on of total profit:
=

3. Calculating the deficiency:
Since Mohit is guaranteed ₹40,000 but his actual share is ₹22,500, deficiency = Guaranteed amount - Actual share
= ₹40,000 - ₹22,500 = ₹17,500

4. Deficiency to be borne by others:
Others will bear the deficiency of ₹17,500 in the ratio 3:1.

5. Dividing the deficiency in 3:1 ratio:
Sum of ratio parts = 3 + 1 = 4
First part =
Second part =

Final Answer:
Others will bear ₹13,125 and ₹4,375 respectively as deficiency in 3:1 ratio.

Q1: Amount Realized from Assets
The assets of ₹9,00,000 were realized at 80%. Thus, the amount realized from assets is: So, the amount realized from assets is ₹7,20,000.
Q2: Journal Entry for Realization Expenses Paid by Alok
The realization expenses of ₹25,000 were borne by Alok. The journal entry for this will be: This entry shows that Alok is bearing the entire cost of the realization expenses, so it is debited to the realization expenses account, and Alok’s capital account is credited.
Q3: The Unrecorded Liability Settled at Lesser Value Causes
The unrecorded liability of ₹20,000 was settled for ₹15,000, resulting in a saving of ₹5,000. This saving is credited to the partners in their profit-sharing ratio of 4:3:3. The journal entry for settling the creditors will be: Then, the saving of ₹5,000 is credited to the partners' capital accounts based on the profit-sharing ratio (4:3:3):

- Alok’s share:
- Bhavya’s share:
- Chirag’s share: The journal entry for this is: