Chabi and Tanya were partners sharing Profit and Losses in 3 : 2 with affect from 1st April 2021, they decided to share future profits equally.
Answer the following questions:
i. On that date, following journal entry was passed by the firm:
Which of the following balance was existing in the books of the firm on the date of reconstitution?
(a) Contingency Reserve ₹ 3,00,000
(b) Profit and Loss (Dr.) Balance ₹ 3,00,000
(c) Profit and Loss (Cr.) Balance ₹ 3,00,000
(d) Advertisement Suspense Account ₹ 2,00,000
ii. On that date, following journal entry was passed by the firm:
Which of the following balance was existing in the books of the firm on the date of reconstitution?
a) Contingency Reserve ₹ 3,00,000
b) Goodwill ₹ 3,00,000
c) Profit and Loss (Cr.) Balance ₹ 3,00,000
d) Advertisement Suspense Account ₹ 2,00,000
iii. On that date, following journal entry was passed by the firm:
Which of the following balance was existing in the books of the firm on the date of reconstitution?
a. Contingency Reserve ₹ 3,00,000
b. Gain on Revaluation ₹3,00,000
c. Profit and Loss (Cr.) Balance ₹ 3,00,000
d. Advertisement Suspense Account ₹ 2,00,000
iv. Tanya is a ___________.
a) New partner
b) Sacrificing partner
c) Gaining partner
d) Neither gaining nor sacrificing
