question_answer

Read the following hypothetical text and answer the given questions:

Raj, Taj and Naz are partners engaged in the business of selling frozen food items sharing profits and losses equally.

As there was need of funds to purchase more refrigerators, Raj bought additional capital of? 1,50,000 in the firm. Raj demanded that his share in profit should be increased as he bought additional capital to which rest of the partners agreed From 1st April, 2019, they decided to share profits in the ratio of 2 : 1 : 1, At the time of reconstitution, the following assets and liabilities are revalued and reassessed:

Items Book Figure Revised Figure Freehold Premises 7,50,000 8,00,000 Stock 2,25,000 2,00,000 Debtors 75,000 72,500 Furniture 1,00,000 90,000 Creditors 30,000 25,000 Based on the above information you are required to answer the following questions:

Entry for profit on revalution will be:

A)

Megha's Capital/Current A/c   Dr.             2,200

Richa's Capital/Current A/c          Dr.        2,200

To Samiksha's Capital/Current A/c           3,000

B)

Richa's Capital/Current A/c    Dr.      2,916

To Megha's Capital/Current A/c                            1,458

To Samiksha's Capital/Current A/c                        1,458

 

C)

Samiksha's Capital/Current A/c  Dr.   2,800

To Richa's Capital/Current A/c                              1,400

To Megha's Capital/Current A/c                            1,400

 

D)

Richa's Capital/Current A/c       Dr.   1,450

Samiksha's Capital/Current A/c      Dr.   1.450

To Megha's Capital/Current A/c                            2,900