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The balance of deferred refinery expenditure will be divided between old partners in old ratio because such expenditure was not incurred with the permission of new partner and even it is occurred before entering of such new partner. Is this statement right ? Answer me firstly in yes or no.?
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The balance of deferred refinery expenditure will be divided between o...
Yes
Explanation:
Deferred Refinery Expenditure:
Deferred refinery expenditure refers to the expenditure that is incurred in setting up a refinery but is not fully utilized or consumed in the same accounting period. This expenditure is carried forward to the subsequent accounting periods until it is fully utilized.
Division between Old Partners:
The balance of deferred refinery expenditure will be divided between old partners in the old ratio. This is because the expenditure was not incurred with the permission of the new partner and it was accrued before the new partner entered the partnership. Therefore, the new partner should not be responsible for sharing this expenditure.
Implications of Not Involving New Partner:
By dividing the deferred refinery expenditure between the old partners only, it ensures that the new partner is not burdened with expenses that were incurred before their entry into the partnership. This is fair and equitable to all partners involved.
Legal and Ethical Considerations:
It is important to adhere to the terms of the partnership agreement and ensure that all partners are treated fairly. By dividing the expenditure between the old partners, the rights and obligations of each partner are respected.
Conclusion:
In conclusion, the statement is correct. The balance of deferred refinery expenditure should be divided between old partners in the old ratio, as the new partner was not involved in the decision to incur the expenditure. This ensures fairness and transparency in the partnership arrangement.
Explanation:
Deferred Refinery Expenditure:
Deferred refinery expenditure refers to the expenditure that is incurred in setting up a refinery but is not fully utilized or consumed in the same accounting period. This expenditure is carried forward to the subsequent accounting periods until it is fully utilized.
Division between Old Partners:
The balance of deferred refinery expenditure will be divided between old partners in the old ratio. This is because the expenditure was not incurred with the permission of the new partner and it was accrued before the new partner entered the partnership. Therefore, the new partner should not be responsible for sharing this expenditure.
Implications of Not Involving New Partner:
By dividing the deferred refinery expenditure between the old partners only, it ensures that the new partner is not burdened with expenses that were incurred before their entry into the partnership. This is fair and equitable to all partners involved.
Legal and Ethical Considerations:
It is important to adhere to the terms of the partnership agreement and ensure that all partners are treated fairly. By dividing the expenditure between the old partners, the rights and obligations of each partner are respected.
Conclusion:
In conclusion, the statement is correct. The balance of deferred refinery expenditure should be divided between old partners in the old ratio, as the new partner was not involved in the decision to incur the expenditure. This ensures fairness and transparency in the partnership arrangement.
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The balance of deferred refinery expenditure will be divided between old partners in old ratio because such expenditure was not incurred with the permission of new partner and even it is occurred before entering of such new partner. Is this statement right ? Answer me firstly in yes or no.?
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The balance of deferred refinery expenditure will be divided between old partners in old ratio because such expenditure was not incurred with the permission of new partner and even it is occurred before entering of such new partner. Is this statement right ? Answer me firstly in yes or no.? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about The balance of deferred refinery expenditure will be divided between old partners in old ratio because such expenditure was not incurred with the permission of new partner and even it is occurred before entering of such new partner. Is this statement right ? Answer me firstly in yes or no.? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The balance of deferred refinery expenditure will be divided between old partners in old ratio because such expenditure was not incurred with the permission of new partner and even it is occurred before entering of such new partner. Is this statement right ? Answer me firstly in yes or no.?.
The balance of deferred refinery expenditure will be divided between old partners in old ratio because such expenditure was not incurred with the permission of new partner and even it is occurred before entering of such new partner. Is this statement right ? Answer me firstly in yes or no.? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about The balance of deferred refinery expenditure will be divided between old partners in old ratio because such expenditure was not incurred with the permission of new partner and even it is occurred before entering of such new partner. Is this statement right ? Answer me firstly in yes or no.? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The balance of deferred refinery expenditure will be divided between old partners in old ratio because such expenditure was not incurred with the permission of new partner and even it is occurred before entering of such new partner. Is this statement right ? Answer me firstly in yes or no.?.
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