Question : A, B and C were partners in a firm sharing profits in the ratio of 6:5:4. Their capitals were A-Rs. 1,00,000; B-Rs. 80,000 and C-Rs. 60,000 respectively. On 1st April, 2009, A retired from the firm and the new profit-sharing ratio between B and C was decided as 1:4.0n A's retirement, the goodwill of the firm was valued at Rs. 1,80,000. C's capital account will be debited/credited by Rs...........
Option 1: Debited by Rs 80,000
Option 2: Credited by Rs 80,000
Option 3: Debited by Rs 96,000
Option 4: Credited by Rs 96,000
Correct Answer: Debited by Rs 96,000
Solution : Answer = Debited by Rs 96,000
A's share = $1,80,000\times\frac{6}{15} = 72,000$
B's share = $\frac{1}{5}-\frac{5}{15} = \frac{3 - 5}{15} = \frac{-2}{15}\times1,80,000 = 24,000$
C's share = $\frac{4}{5}-\frac{4}{15} = \frac{12 - 4}{15} = \frac{8}{15}\times1,80,000 = 96,000$
C's Capital A/c Dr 96000
To A's Capital A/c 72000
To B's Capital A/c 24000
Hence, the correct option is 3.
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