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Question : A and B who share profits in the ratio of 3: 2 had capitals of Rs. 2,00,000 and Rs.1,50,000 respectively. They admit C into partnership from 1st April, 2020 on the following terms for I/3rd share in future profits:
(i) That C to bring Rs. 2,00,000 as capital.
(ii) That C is unable to bring his share of goodwill, goodwill of the firm is valued at Rs.1,50,000. Choose the correct option.

Option 1: Debiting bank a/c Rs 3,00,000 and crediting C's capital account with Rs 3,00,000

Option 2: Debiting Bank account with Rs 2,00,000 and crediting C's capital with Rs 2,00,000

Option 3: Debiting C's current account Rs 50,000 and Crediting A capital account with Rs 30,000 and Rs 20,000

Option 4: Both 2 and 3


Team Careers360 9th Jan, 2024
Answer (1)
Team Careers360 16th Jan, 2024

Correct Answer: Both 2 and 3


Solution : Answer = Both 2 and 3

Bank A/c Dr 2,00,000

C's Capital A/c 2,00,000

C's Current A/c Dr 50,000

To A's Capital A/c 30000

To B's Capital A/c 20,000

(Total Goodwill = 1,50,000

C's share = 1,50,000 x 1/3)

(S. ratio = 3:2)

Hence, the correct option is 4.

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