Q27. In case of change in profit sharing ratio among partners in a firm, the Stock Account stood at

Q: What is the correct answer for CUET UG Accounting Q27?

The correct answer is B. Sol. Value of stock at ₹55,000 is overvalued which means the actual value of Stock must be less than ₹55,000. This will cause a reduction in the value of stock. Therefore, the stock should be credited in revaluation account.Amount by which Stock should be credited=55,000 × 10/110 = ₹5,000.

Q: Q27. In case of change in profit sharing ratio among partners in a firm, the Stock Account stood at ₹55,000 in the Balance Sheet of the old firm and at the time of reconstitution, it was observed…

The correct answer is B. Sol. Value of stock at ₹55,000 is overvalued which means the actual value of Stock must be less than ₹55,000. This will cause a reduction in the value of stock. Therefore, the stock should be credited in revaluation account.Amount by which Stock should be credited=55,000 × 10/110 = ₹5,000.

Q: What are the options for this CUET UG Accounting question?

A. Stock A/c will be debited by ₹5,500 · B. Stock A/c will be credited by ₹5,000 · C. Stock A/c will be debited by ₹5,000 · D. Stock A/c will be credited by ₹5,500

Question

Q27. In case of change in profit sharing ratio among partners in a firm, the Stock Account stood at ₹55,000 in the Balance Sheet of the old firm and at the time of reconstitution, it was observed that Stock A/c was overvalued by 10%. Identify the correct option with respect to treatment of stock account in Revaluation Account.
(a) Stock A/c will be debited by ₹5,500
(b) Stock A/c will be credited by ₹5,000
(c) Stock A/c will be debited by ₹5,000
(d) Stock A/c will be credited by ₹5,500

FirstInTest · Accepted Answer

Sol. Value of stock at ₹55,000 is overvalued which means the actual value of Stock must be less than ₹55,000. This will cause a reduction in the value of stock. Therefore, the stock should be credited in revaluation account.Amount by which Stock should be credited=55,000 × 10/110 = ₹5,000.

Answer

Stock A/c will be debited by ₹5,500

Answer

Stock A/c will be credited by ₹5,000

Answer

Stock A/c will be debited by ₹5,000

Answer

Stock A/c will be credited by ₹5,500

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