Question

choose the odd one out: revaluation account realisation of assets adjustments of goodwill gaining ratio.

Answer 1

Answer:

Realisation of assets

Answer 2

Answer:

Gaining ratio is a financial tool for profit mapping and tracking while, the other options are accounts.

Explanation:

• Revaluation account: to determine net profit or loss on revaluing assets and liabilities, as well as to include such items that are not yet recorded in the books, a revaluation account is described. When a new partner is admitted, when a partner passes away, or when a partner retires, a revaluation account is created.
• realisation of assets: this account is set up to determine if a firm's dissolution resulted in a profit or a loss. Liabilities (other than capital accounts) are transferred to the realisation account's credit side, while all assets (apart from cash and bank accounts) are moved to the account's debit side.
• Adjustment of goodwill: Accounting treatment in the event that the profit-sharing ratio changes (PSR) Goodwill is valued whenever there is a change in the partners' profit-sharing ratio. One partner might benefit financially while others make sacrifices. As a result, we modify Goodwill using partner capital accounts.
• Gaining ratio is a form of financial tool that aids in figuring out how much of an existing partner's profits the remaining partners of a firm will receive in the event of his death or retirement. Gaining ratio refers to the percentage by which they split the earnings.