1. Gain ratio means old ratio minus new
ratio. (False)
2. Retiring partners share in profit
upto the date of his retirement will be debited to profit and loss suspense
account. (True)
3. Amount due to a retiring partner if
not paid appears as his loan in the book of the firm. (True)
4. Revaluation account is also called
as realisation account. (False)
5. Retirement of a partner leads to
dissolution of the firm unless otherwise agreed upon. (True)
6. Profit on revaluation account is
transferred to continuing partners capital account only. (False)
7. Gain Ratio = New Ratio – Old Ratio. (True)
8. Revaluation account is also known as
Profit and Loss Adjustment Account. (True)
