Commerce Exam > Commerce Questions > If any asset is taken over by a partner at th...
Start Learning for Free
If any asset is taken over by a partner at the time of his retirement, how will you record it?
- a)Balance Sheet
- b)Dr. side of his capital account
- c)Cr. Side of his capital account
- d)Revaluation Account
Correct answer is option 'B'. Can you explain this answer?
Verified Answer
If any asset is taken over by a partner at the time of his retirement,...
Any asset taken by the partner will be shown in the debit side of his capital account. It means his capital account will be reduced by the same.
Most Upvoted Answer
If any asset is taken over by a partner at the time of his retirement,...
Recording of Asset taken over by a Partner at Retirement
When a partner retires from a partnership firm, he may take over some assets of the firm as per the terms of the partnership agreement. The recording of such an asset is done in the following manner:
1. Dr. side of his capital account: The asset taken over by the retiring partner is recorded on the debit side of his capital account. This is done to increase the capital balance of the partner.
2. Value of asset: The value of the asset taken over is debited to the capital account of the retiring partner. This value is either agreed upon by the partners or it is determined by revaluation of assets and liabilities.
3. Cr. side of the asset account: The asset account from which the asset is taken over is credited with the value of the asset.
4. No effect on Profit and Loss Account: The transfer of asset from the firm to the retiring partner does not affect the Profit and Loss Account of the firm.
Conclusion
In conclusion, when a partner takes over an asset at the time of his retirement, it is recorded on the debit side of his capital account and the credit side of the asset account from which the asset is taken over. This does not affect the Profit and Loss Account of the firm.
When a partner retires from a partnership firm, he may take over some assets of the firm as per the terms of the partnership agreement. The recording of such an asset is done in the following manner:
1. Dr. side of his capital account: The asset taken over by the retiring partner is recorded on the debit side of his capital account. This is done to increase the capital balance of the partner.
2. Value of asset: The value of the asset taken over is debited to the capital account of the retiring partner. This value is either agreed upon by the partners or it is determined by revaluation of assets and liabilities.
3. Cr. side of the asset account: The asset account from which the asset is taken over is credited with the value of the asset.
4. No effect on Profit and Loss Account: The transfer of asset from the firm to the retiring partner does not affect the Profit and Loss Account of the firm.
Conclusion
In conclusion, when a partner takes over an asset at the time of his retirement, it is recorded on the debit side of his capital account and the credit side of the asset account from which the asset is taken over. This does not affect the Profit and Loss Account of the firm.
|
Explore Courses for Commerce exam
|
|
Top Courses for CommerceView all
Question Description
If any asset is taken over by a partner at the time of his retirement, how will you record it?a)Balance Sheetb)Dr. side of his capital accountc)Cr. Side of his capital accountd)Revaluation AccountCorrect answer is option 'B'. Can you explain this answer? for Commerce 2025 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about If any asset is taken over by a partner at the time of his retirement, how will you record it?a)Balance Sheetb)Dr. side of his capital accountc)Cr. Side of his capital accountd)Revaluation AccountCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for Commerce 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for If any asset is taken over by a partner at the time of his retirement, how will you record it?a)Balance Sheetb)Dr. side of his capital accountc)Cr. Side of his capital accountd)Revaluation AccountCorrect answer is option 'B'. Can you explain this answer?.
If any asset is taken over by a partner at the time of his retirement, how will you record it?a)Balance Sheetb)Dr. side of his capital accountc)Cr. Side of his capital accountd)Revaluation AccountCorrect answer is option 'B'. Can you explain this answer? for Commerce 2025 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about If any asset is taken over by a partner at the time of his retirement, how will you record it?a)Balance Sheetb)Dr. side of his capital accountc)Cr. Side of his capital accountd)Revaluation AccountCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for Commerce 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for If any asset is taken over by a partner at the time of his retirement, how will you record it?a)Balance Sheetb)Dr. side of his capital accountc)Cr. Side of his capital accountd)Revaluation AccountCorrect answer is option 'B'. Can you explain this answer?.
Solutions for If any asset is taken over by a partner at the time of his retirement, how will you record it?a)Balance Sheetb)Dr. side of his capital accountc)Cr. Side of his capital accountd)Revaluation AccountCorrect answer is option 'B'. Can you explain this answer? in English & in Hindi are available as part of our courses for Commerce.
Download more important topics, notes, lectures and mock test series for Commerce Exam by signing up for free.
Here you can find the meaning of If any asset is taken over by a partner at the time of his retirement, how will you record it?a)Balance Sheetb)Dr. side of his capital accountc)Cr. Side of his capital accountd)Revaluation AccountCorrect answer is option 'B'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
If any asset is taken over by a partner at the time of his retirement, how will you record it?a)Balance Sheetb)Dr. side of his capital accountc)Cr. Side of his capital accountd)Revaluation AccountCorrect answer is option 'B'. Can you explain this answer?, a detailed solution for If any asset is taken over by a partner at the time of his retirement, how will you record it?a)Balance Sheetb)Dr. side of his capital accountc)Cr. Side of his capital accountd)Revaluation AccountCorrect answer is option 'B'. Can you explain this answer? has been provided alongside types of If any asset is taken over by a partner at the time of his retirement, how will you record it?a)Balance Sheetb)Dr. side of his capital accountc)Cr. Side of his capital accountd)Revaluation AccountCorrect answer is option 'B'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice If any asset is taken over by a partner at the time of his retirement, how will you record it?a)Balance Sheetb)Dr. side of his capital accountc)Cr. Side of his capital accountd)Revaluation AccountCorrect answer is option 'B'. Can you explain this answer? tests, examples and also practice Commerce tests.
|
|
Explore Courses for Commerce exam
|
|
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
|
Signup to see your scores
go up
within 7 days!
within 7 days!
Takes less than 10 seconds to signup