For the purposes of section $224$ (IB) the number of partners of a firm which shall be taken into account would be as on the date of _____________.

Completion of audit

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Auditor's report

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Acceptance of audit

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Starting of audit work

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Solution

The correct option is C Acceptance of audit
Acceptance of audit is the date as on which the count of number of partners of a firm shall be considered and not the date of starting of audit work, since there are chances that between the date of acceptance and date of working, some manipulation may happen.

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224

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Q. Following is the Balance Sheet of A and B , who shared Profits and Losses in the ratio of 2 : 1 , as at 1st April, 2018:

BALANCE SHEET OF A AND B as on 1st April, 2018
Liabilities		₹	Assets	₹
Capital A/cs:			Land ad Buildings	2,90,000
A	3,00,000		Furniture	80,000
B	2,00,000	5,00,000	Stock	2,40,000
Reserve		1,50,000	Debtors	1,50,000
Creditors		2,00,000	Bank	60,000
			Cash	30,000

		8,50,000		8,50,000

On the above date , the partners changed their profit-sharing ratio to 3 : 2 . For this purpose, the goodwill of the firm was valued at ₹ 3,00,000 . The partners also agreed for the following:
(a) The value of Land and Building will be ₹ 5,00,000;
(b) Reserve is to be maintained at ₹ 3,00,000.
(c) The total capital of the partners in the new firm will be ₹ 6,00,000 , which will be shared by the partners in their new profit-sharing ratio .
Prepare Revaluation Account , Partners' Capital Accounts and the Balance Sheet of the reconstituted firm.

Q. An audit firm is appointed for 10 years. After 10 years a new audit firms is being appointed having partners common to the previous retiring audit firm. Is the appointment legitimate?

Q. Following is the Balance Sheet of A and B, who shared Profits and Losses in the ratio of 2 : 1, as at 1st April, 2019:

BALANCE SHEET OF A AND B as on 1st April, 2019
Liabilities		Amount (₹)	Assets	Amount (₹)
Capital A/cs:			Land ad Building	2,90,000
A	3,00,000		Furniture	80,000
B	2,00,000	5,00,000	Stock	2,40,000
Reserve		1,50,000	Debtors	1,50,000
Creditors		2,00,000	Bank	60,000
			Cash	30,000

		8,50,000		8,50,000

On the above date, the partners changed their profit-sharing ratio to 3 : 2. For this purpose, the goodwill of the firm was valued at ₹ 3,00,000. The partners also agreed for the following:
(a) The value of Land and Building will be ₹ 5,00,000;
(b) Reserve is to be maintained at ₹ 3,00,000.
(c) The total capital of the partners in the new firm will be ₹ 6,00,000, which will be shared by the partners in their new profit-sharing ratio.
Prepare Revaluation Account, Partners' Capital Accounts and the Balance Sheet of the reconstituted firm.

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For the purposes of section 224(IB) the number of partners of a firm which shall be taken into account would be as on the date of _____________.

For the purposes of section $224$ (IB) the number of partners of a firm which shall be taken into account would be as on the date of _____________.