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Question
On the retirement of Hari from the firm of 'Hari, Ram and Sharma' the Balance Sheet showed a debit balance of ₹ 12,000 in the Profit and Loss Account. For calculating the amount payable to Hari this balance will be transferred:
Options
to the credit of the capital accounts of Hari, Ram and Sharma equally.
to the debit of the capital accounts of Hari, Ram and Sharma equally.
to the debit of the capital accounts of Ram and Sharma equally.
to the credit of the capital accounts of Ram and Sharma equally.
MCQ
Solution
to the debit of the capital accounts of Hari, Ram and Sharma equally.
Explanation:
Hari's debit balance in the Profit and Loss Account is transferred to Hari, Ram, and Sharma's debit capital accounts in equal amounts at the time of Hari's retirement.
shaalaa.com
Retirement or Death of a Partner - Adjustment of Accumulated Profits and Losses
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