{"id":56839,"date":"2024-04-16T00:51:39","date_gmt":"2024-04-16T00:51:39","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=56839"},"modified":"2024-04-16T00:51:39","modified_gmt":"2024-04-16T00:51:39","slug":"at-the-time-of-retirement-of-a-partner-profit-on-revaluation-of-assets-and-liabilities-is-credited-to","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/at-the-time-of-retirement-of-a-partner-profit-on-revaluation-of-assets-and-liabilities-is-credited-to\/","title":{"rendered":"At the time of retirement of a partner profit on revaluation of assets and liabilities is credited to"},"content":{"rendered":"<p>\r\n    <!-- Check if it's an AMP page -->\r\n            <!-- Non-AMP version -->\r\n        <div class=\"mcq-container\" data-quiz-id=\"quizState_6a97fabe0ef74\">\r\n                                            <div class=\"option\" data-option-key=\"option1\" data-is-correct=\"false\">\r\n                    Capital Account of retiring partner                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option2\" data-is-correct=\"false\">\r\n                    Capital Accounts of all partners in their old profit sharing ratio                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option3\" data-is-correct=\"true\">\r\n                    Capital Accounts of remaining partners in their gaining ratio                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option4\" data-is-correct=\"false\">\r\n                    Capital Accounts of remaining partners in their new profit sharing ratio                <\/div>\r\n                            \r\n            <!-- Feedback messages for non-AMP -->\r\n            <div class=\"feedback\" data-feedback=\"wrong\">Answer is Right!<\/div>\r\n            <div class=\"feedback\" data-feedback=\"right\">Answer is Wrong!<\/div>\r\n        <\/div>\r\n\r\n        <script>\r\n        document.addEventListener('DOMContentLoaded', function () {\r\n            var containers = document.querySelectorAll('.mcq-container');\r\n\r\n            containers.forEach(function(container) {\r\n                var options = container.querySelectorAll('.option');\r\n                var feedbackSelect = container.querySelector('[data-feedback=\"select\"]');\r\n                var feedbackWrong = container.querySelector('[data-feedback=\"wrong\"]');\r\n                var feedbackRight = container.querySelector('[data-feedback=\"right\"]');\r\n\r\n                options.forEach(function(option) {\r\n                    option.addEventListener('click', function() {\r\n                        var selectedOption = option.getAttribute('data-option-key');\r\n                        var isCorrect = option.getAttribute('data-is-correct') === 'true';\r\n\r\n                        \/\/ Remove previous selections\r\n                        options.forEach(function(opt) {\r\n                            opt.classList.remove('correct', 'incorrect');\r\n                        });\r\n\r\n                        \/\/ Add the correct\/incorrect class\r\n                        if (isCorrect) {\r\n                            option.classList.add('correct');\r\n                            feedbackRight.hidden = false;\r\n                            feedbackWrong.hidden = true;\r\n                        } else {\r\n                            option.classList.add('incorrect');\r\n                            feedbackRight.hidden = true;\r\n                            feedbackWrong.hidden = false;\r\n                        }\r\n\r\n                        \/\/ Hide select feedback\r\n                        feedbackSelect.hidden = true;\r\n                    });\r\n                });\r\n            });\r\n        });\r\n        <\/script>\r\n    \r\n    <!--more--><\/p>\n<p>The correct answer is: <strong>C. Capital Accounts of <div class=\"youtube-subscribe-container\">\r\n        <a href=\"https:\/\/www.youtube.com\/channel\/UCNHT8lW-JmLC68rjBfZhdkg?sub_confirmation=1\" target=\"_blank\" class=\"youtube-subscribe-button\">\r\n            <span class=\"youtube-icon\">\r\n                <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 576 512\">\r\n                    <path d=\"M549.7 124.1c-6.3-23.7-24.8-42.3-48.3-48.6C458.8 64 288 64 288 64S117.2 64 74.6 75.5c-23.5 6.3-42 24.9-48.3 48.6-11.4 42.9-11.4 132.3-11.4 132.3s0 89.4 11.4 132.3c6.3 23.7 24.8 41.5 48.3 47.8C117.2 448 288 448 288 448s170.8 0 213.4-11.5c23.5-6.3 42-24.2 48.3-47.8 11.4-42.9 11.4-132.3 11.4-132.3s0-89.4-11.4-132.3zm-317.5 213.5V175.2l142.7 81.2-142.7 81.2z\"\/>\r\n                <\/svg>\r\n            <\/span>\r\n            Subscribe on YouTube\r\n        <\/a>\r\n    <\/div> remaining partners in their gaining ratio<\/strong>.<\/p>\n<p>When a partner retires, the profit or loss on revaluation of assets and liabilities is shared among the remaining partners in their gaining ratio. The gaining ratio is the ratio in which the remaining partners&#8217; capital accounts will increase as a result of the revaluation.<\/p>\n<p>For example, if there are three partners, A, B, and C, and the profit on revaluation is $10,000, and A&#8217;s capital account is $50,000, B&#8217;s capital account is $40,000, and C&#8217;s capital account is $30,000, then the gaining ratio would be 2:1:1. This means that A would receive $6,667 of the profit, B would receive $3,333, and C would receive $3,333.<\/p>\n<p>The profit on revaluation is credited to the capital accounts of the remaining partners in their gaining ratio because it is a gain that they have all shared in. The gain is not credited to the capital account of the retiring partner because they are no longer a member of the partnership.<\/p>\n<p>Here is a more detailed explanation of each option:<\/p>\n<ul>\n<li>Option A: Capital Account of <div class=\"telegram-channel-container\">\r\n        <a href=\"https:\/\/t.me\/pscnotes2025\" target=\"_blank\" class=\"telegram-channel-button\">\r\n            <span class=\"telegram-icon\">\r\n                <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 496 512\">\r\n                    <path fill=\"white\" d=\"M248,8C111,8,0,119,0,256s111,248,248,248s248-111,248-248S385,8,248,8z M362,177L320,367c-3,14-10,18-20,14l-56-41l-27,26 c-3,3-5,5-10,5l4-63L323,196c5-5-1-7-8-3l-98,62l-42-13c-9-3-10-9,2-14l162-63C351,160,365,164,362,177z\"\/>\r\n                <\/svg>\r\n            <\/span>\r\n            Join Our Telegram Channel\r\n        <\/a>\r\n    <\/div> retiring partner. This is incorrect because the profit on revaluation is not a gain that the retiring partner has shared in.<\/li>\n<li>Option B: Capital Accounts of all partners in their old profit sharing ratio. This is incorrect because the gaining ratio is not the same as the old profit sharing ratio.<\/li>\n<li>Option C: Capital Accounts of remaining partners in their gaining ratio. This is the correct answer because the profit on revaluation is shared among the remaining partners in their gaining ratio.<\/li>\n<li>Option D: Capital Accounts of remaining partners in their new profit sharing ratio. This is incorrect because the new profit sharing ratio is not determined until after the profit on revaluation has been shared.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Subscribe on YouTube<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[85],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>At the time of retirement of a partner profit on revaluation of assets and liabilities is credited to<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/at-the-time-of-retirement-of-a-partner-profit-on-revaluation-of-assets-and-liabilities-is-credited-to\/\" \/>\n<meta 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