Accountancy MCQs
Topic Notes: Accountancy
General Description
Plato
- Biography: Ancient Greek philosopher (427–347 BCE), student of Socrates and teacher of Aristotle, founder of the Academy in Athens.
- Important Ideas:
- Theory of Forms
- Philosopher-King
- Ideal State
1
Partners A and B share profits and losses in a 3:2 ratio, each holding a capital balance of $100,000. If the firm's assets decrease in value from $60,000 to $40,000, what is the adjusted balance of A's capital account?
Answer:
88000
The total revaluation loss is $20,000 ($60,000 - $40,000). Partner A's share of this loss is 3/5 of $20,000, which equals $12,000. Subtracting this loss from A's initial capital of $100,000 results in an adjusted capital balance of $88,000.