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The balance of deferred revenue expenditure will be divided between Ore partners in odd ratio because such deferred revenue expenditure was not incurred with 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 revenue expenditure will be divided between Or...
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- **Explanation**:
**Deferred Revenue Expenditure**: Deferred revenue expenditure refers to expenses that are incurred during a particular accounting period but are not written off as expenses in the same period. Instead, these expenses are deferred and written off in subsequent accounting periods.
**Division between Partners**: In the case of deferred revenue expenditure incurred before the entry of a new partner, the amount of such expenditure should be divided between the existing partners in their profit-sharing ratio. This is because the new partner was not involved in the decision to incur the deferred revenue expenditure and should not be held liable for it.
**Odd Ratio Division**: The deferred revenue expenditure should be divided between the existing partners in their profit-sharing ratio, which is usually in the odd ratio. This ensures that each partner bears the burden of the expenditure based on their share in the profits of the partnership.
**Fair Allocation**: Dividing the deferred revenue expenditure in the odd ratio ensures that each partner contributes a fair share towards the expense, taking into account their respective profit-sharing ratios. This division method is equitable and reflects the partners' agreed-upon profit-sharing arrangement.
In conclusion, the statement that the balance of deferred revenue expenditure will be divided between partners in the odd ratio is correct in the context of a new partner joining the partnership after the expenditure was incurred.
- **Explanation**:
**Deferred Revenue Expenditure**: Deferred revenue expenditure refers to expenses that are incurred during a particular accounting period but are not written off as expenses in the same period. Instead, these expenses are deferred and written off in subsequent accounting periods.
**Division between Partners**: In the case of deferred revenue expenditure incurred before the entry of a new partner, the amount of such expenditure should be divided between the existing partners in their profit-sharing ratio. This is because the new partner was not involved in the decision to incur the deferred revenue expenditure and should not be held liable for it.
**Odd Ratio Division**: The deferred revenue expenditure should be divided between the existing partners in their profit-sharing ratio, which is usually in the odd ratio. This ensures that each partner bears the burden of the expenditure based on their share in the profits of the partnership.
**Fair Allocation**: Dividing the deferred revenue expenditure in the odd ratio ensures that each partner contributes a fair share towards the expense, taking into account their respective profit-sharing ratios. This division method is equitable and reflects the partners' agreed-upon profit-sharing arrangement.
In conclusion, the statement that the balance of deferred revenue expenditure will be divided between partners in the odd ratio is correct in the context of a new partner joining the partnership after the expenditure was incurred.
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The balance of deferred revenue expenditure will be divided between Ore partners in odd ratio because such deferred revenue expenditure was not incurred with 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 revenue expenditure will be divided between Ore partners in odd ratio because such deferred revenue expenditure was not incurred with 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 revenue expenditure will be divided between Ore partners in odd ratio because such deferred revenue expenditure was not incurred with 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 revenue expenditure will be divided between Ore partners in odd ratio because such deferred revenue expenditure was not incurred with 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 revenue expenditure will be divided between Ore partners in odd ratio because such deferred revenue expenditure was not incurred with 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 revenue expenditure will be divided between Ore partners in odd ratio because such deferred revenue expenditure was not incurred with 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 revenue expenditure will be divided between Ore partners in odd ratio because such deferred revenue expenditure was not incurred with 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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