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Question : A, B, C and D were partners sharing profits in the ratio of 5: 3: 2: 2. B died on 1st March 2018. The goodwill of the firm was valued at Rs. 6,00,000. A, C and D decided to share future profits equally.

Option 1: Debit C and D by Rs. 1,00,000 each and Credit A by Rs.50,000 and B by Rs. 1,50,000.

Option 2: Debit C and D by Rs. 50,000 each and Credit A by Rs.50,000 and B by Rs. 50,000

Option 3: Debit A and B by Rs. 1,00,000 each and Credit C by Rs.50,000 and B by Rs. 1,50,000.

Option 4: None of the above.


Team Careers360 18th Jan, 2024
Answer (1)
Team Careers360 20th Jan, 2024

Correct Answer: Debit C and D by Rs. 1,00,000 each and Credit A by Rs.50,000 and B by Rs. 1,50,000.


Solution : Answer = Debit C and D by Rs. 1,00,000 each and Credit A by Rs.50,000 and B by Rs. 1,50,000.

G.R= N.R- O.R
A=$\frac{1}{3}-\frac{5}{12}=\frac{4-5}{12}=\frac{-1}{12}$= Sacrifice× 6,00,000.
C= $\frac{1}{3}-\frac{2}{12}=\frac{4-2}{12}=\frac{2}{12}$= Gain
D= $\frac{1}{3}-\frac{2}{12}=\frac{4-2}{12}=\frac{2}{12}$= Gain

C's capital a/c Dr 1,00,000
D's capital a/c Dr 1,00,000
To B's capital a/c 1,50,000
To A's capital a/c 50,000
Hence, the correct option is 1.

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