Question

Q.36 Proportionate capital method of
piecemeal distribution is also known as
A. highest relative capital method
B. Excess capital method
C.
quotient method
D.
all given options​

Answer 1

Answer:

( A) quotient method IS CORRECT ANS

Answer 2

Answer:

From the given options, the correct option is C) Quotient method.

Proportionate capital method of piecemeal distribution is also known as Quotient method.

Explanation:

METHOD OF PROPORTIONAL CAPITAL

• The first payment is made on the excess capital (actual capital less capital proportionate to the profit sharing ratio). All capitals are included in the profits sharing ratio once excess capitals have been paid. Payments can then be made according to the profit-sharing ratio.
• The term "Piecemeal Distribution" refers to a practice employed in accounting whereby liabilities are paid off gradually or in phases as and when funds are received from the sale of assets.
• A condition brought on by a company's demise is referred to as a piecemeal distribution of funds in accounting.

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