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Revaluation account is a nominal account prepared at the time of admission of a new partner. This is prepared to nd out the profit or loss on revaluing the assets, if they are overstated or understated.

When the new partner is not able to bring his share of goodwill, his account is debited and the sacrificing partners capital account is credited. The following is the journal entry. New Partners’ Capital A/c Dr. To sacrificing Partners’Capital A/c.

b or c (Old Partner’s capital a/c or All Partner’s capital a/c)

A memorandum revaluation account is prepared when the partners decide to record the effect of revaluation of assets and liabilities without affecting the old figures of assets and liabilities in the balance sheet.

Accumulated profits and losses are distributed amongst the old partner’s in their old profit sharing ratio. The new partner should not share such profits or losses because these arose before his admission.

A firm may have accumulated profits not yet transferred to capital accounts of the partners. These are usually in the firm of general reserve, reserve fund and/or Profit and Loss Account balance. The new partner is not entitled to have any share in such accumulated profits. These are distributed among the partners by transferring it to their capital accounts in old profit sharing ratio.

Similarly, if there are some accumulated losses in the form of a debit balance of profit and loss account appearing in the balance sheet of the firm. A remote possibility, the same should also be transferred to the old partners’ capital accounts.

Accumulated profits at the time of admission of a partner are transferred to old partners’ Capital/Current Accounts in their old profit sharing ratio.

(a) The partnership is dissolved

(b) Outgoing partner

(d) Joint Life Policy account and Balance Sheet

(b) The retiring partner’s loan account

1. Retirement is a known thing, so usually takes place at the end of an accounting period, but death may take place at any time. 

2. On retirement, a partner severs his connection with the firm Voluntarily. But in death, it is automatic.

3. On retirement, the amount due to the retiring partner is transferred to his Loan Account, while in death; the total amount due to the deceased partner is transferred to his Executor’s Loan Account.

(d) His executor’s loan account

The general reserve and accumulated profits or losses are transferred to all partners’ capital accounts in their profit sharing ratio. The general reserve and accumulated profits are transferred to the credit side of the account and the accumulated losses to the debit side.

A retiring partner has the right to get his share of goodwill, because the goodwill of the firm has been earned with his efforts too. So he should be compensated by the other partners in their gaining ratio.

At the time of retirement of a partner, the ratio in which the continuing partners share the profit of out going partner’s profit is called gaining ratio. 

Gaining ratio = New ratio – Old ratio.

Gain = new share - Old share

Gaining ratio (X and Y) = \(\frac{7}{12}=-\frac{3}{6}; \frac{5}{12}- \frac{2}{6}\)

= \(\frac{7-6}{12} = \frac{1}{12}; \frac{5-4} {12} = \frac{1}{12}\)

X’s share of goodwill adjusted through capital accounts in the gaining ratio. 

Old ratio = 5:3:2 

New ratio =1:1 

Gaining ratio = New ratio – Old ratio 

Gain of Y = 1/2 – 3/10 = 2/10 

Gain of Z= 1/2 – 2/10 = 3/10 

Gaining ratio of Y and Z = 2 : 3 

Value of goodwill of the firm = 1,00,000 X’s s

hare of goodwill = 1,00,000 × 5/10 = 50,000 

Journal Entry:

[X’s share of goodwill adjusted through the capital accounts of remaining partners in the gaining ratio of 2:3].

When value of the game V = 0.

The game is said to be fair if V = 0. 

Here V = -1. 

∴ It is not a fair game.

We conclude that the production process is out of control’ or lack of control.

1.The reconciliation will bring out any errors that may have been committed either in the cash book or in the Pass Book. 

2. It helps in finding out the actual position of the bank balance.

रोकड़ बही का क्रेडिट शेष

बैंक पास बुक का  ऋणी शेष अधिविकर्ष कहलाता हैं।

Statics deals with study of material objects, with respect to the time.

Dynamics deals with study of motion of object taking into account the factors which cause motion.

Kinematics deal with study of motion of material objects without taking into account the factors like nature of force, nature of bodies, etc. with respect to the time.

Statics deals with the bodies, which are at rest under the action of forces.

Correct answer is

(C) Rs. 5,760

Let the 9 observations be x₁, x₂………..x₉ say

Median = (n + 1) / 2 [∵ n = 9 is an odd]

= (n + 1) / 2 = 5th term 

= x₅ = 20

∴ x₅ = 20

If 2 is added to the last 4 largest numbers then x₁, x₂, x₃, x₄, x₅, x₆ + 2 x₇ + 2, x₈ + 2, x₉ +2

∴ Median = (n + 1) / 2 = (9 + 1) / 2 = 5th term

∴ x₅ = 20

The producer can increase/decrease production by increasing or decreasing variable factors such as raw material, labour, electricity, etc. The producer cannot change the size of firm but can increase production by increasing the capacity of factors of production.

A long term (run) is a time period in which a producer can change all the factors of production. Hence, in this period all the factors of production such as plant, heavy machinery, building of a factory, etc. are variable.

Correct option is (B) Short run production cost and long run production cost

The Long Run Average Cost (LRAC) curve of a firm shows the minimum or lowest average total cost at which a firm can produce any given level of output in the long run.

Correct option is (A) Diagram

The reason for variable cost to increase at diminishing rate with increase in production upto certain extent is that it is affected by the law of increasing returns to scale.

Correct option is (D) Benham

Correct option is (B) For short run

Time-series graphs, histogram, frequency polygon, frequency curve, cumulative frequency polygon, and cumulative frequency polygon.

Time series graphs are those graphs which show the trends in changes of trade cycle or changes in cycle of economic activities with the help of statistical tools. In these graphs changes are taken as variable and time period as base.

The difference between fixed cost and variable cost is possible in short period of time only. In a long run (period) all costs are variable costs.

Correct option is (A) TFC/TP

Correct option is (C) TC starts from a specific point on Y-axis and TVC from origin O.

Correct option is (D) WC + TFC

Correct option is (C) At 45°

A situation where perfect competition is absent is called imperfect competition or imperfectly competitive market. Monopoly, duopoly, oligopoly, monopolistic competition, etc. are examples imperfectly competitive market.

Correct option is (A) Perfect competition market

Correct option is (D) P = AR = MR

When MC > AC, marginal cost curve goes above Average cost curve.

Types of revenue:

1. Total Revenue (TR):

Money received by a firm on selling the units it produces is known as revenue. The total income received by firm from sale is called total revenue. This income is known as total revenue or sale revenue.

Formula:

Total Revenue (TR) = Units sold (Q) × Price of commodity (P)

2. Average Revenue (AR):

The revenue generated per unit of output sold is called the Average Revenue (AR). It is obtained by dividing total revenue with total sale.

Formula:

Average Revenue (AR) =  Total Revenue (TR)  Total sale (Q)

3. Marginal Revenue:

The change in total revenue which results from the sale of one more unit of a commodity is called the marginal revenue.

Formula:

MR_n = R_n – R_{(n – 1)}
where, MR = Marginal Revenue
n = Number of sold units
R_n = Revenue from the sale of n units commodity
R_{(n – 1)} = Revenue from the sale of (n – 1) units

Correct option is (D) Excel worksheets