Question : A, B and C are partners in a firm sharing profits in the ratio of 5 : 3 : 2. On 1st April, 2016 the capitals of the partners were: Rs.5,00,000; Rs.3,00,000 and Rs.2,00,000 respectively. The firm closes its books on 31st March every year. C dies on 5th April, 2016.
On that date : (a) Goodwill of the firm was valued at Rs.30,000; and (b) Gain on Revaluation was calculated at Rs. 8,000. (c) Advertisement Suspense Account appearing in the books was Rs. 10,000. (d) C’s share of profit till the date of his death was calculated as Rs.200. Amount due to C’s Executors will be
Option 1: Rs 2,05,800
Option 2: Rs 2,05,000
Option 3: Rs 2,50,000
Option 4: None of the above
Correct Answer: Rs 2,05,800
Solution : Answer = Rs 2,05,800
C's Capital A/c
To Advertising Susp. A/c
(10,000 x 2/10)
By Goodwill A/c
(30000 x 2/10)
By Revaluation Profit A/c
(8000 x 2/10)
Hence, the correct option is 1.
Question : A, B and C were partners in a firm sharing profits in the ratio of 2:2:1.
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