Question

14th , 15th and 16th question of this pic.

Answer 1

Answer:

Explanation:

14. On admission of a new partner, the firm stands reconstituted and consequently  the assets are revalued and liabilities are reassessed. It is necessary to show  the true position of the firm at the time of admission of a new partner. If  the values of the assets are raised, gain will increase the capital of the  existing partners. Similarly, any decrease in the value of assets, i.e. loss will  decrease the capital of the existing partners. For this purpose a‘Revaluation  Account’ is prepared. This account is credited with all increases in the value of assets and decrease in the value of liabilities. It is debited with decrease  on account of value of assets and increase in the value of liabilities. The  balance of this account shows a gain or loss on revaluation which is  transferred to the existing partner’s capital account in existing profit sharing  ratio

16. b's sacrificing ratio

    sacrificing ratio= old ratio - new ratio

    sacrificing ratio of b = 3/8 - 2/8

                                      = 1/8