Question : D, E, F, P and Z were partners in a firm sharing profits in the ratio 5:4:3:2:1 respectively. Unfortunately, P and Z met with a tragic car accident in which both of them died.
The goodwill of the firm was valued at Rs. 1,50,000 and D, E and F decided to share future profits in the ratio of 4:6:5 respectively.
At the time of adjustment of goodwill, P's capital account will be debited/ credited by Rs ---------.
Option 1: Debited by Rs 10,000
Option 2: Credited by Rs 20,000
Option 3: Debited by Rs 20,000
Option 4: Credited by Rs 10,000
Correct Answer: Credited by Rs 20,000
Solution : Answer = Credited by Rs 20,000
G.Ratio = New Ratio - Old Ratio
D= 4/15 - 5/15 = -1/15 × 1,50,000 = 10,000
E= 6/15 - 4/15 = 2/15 × 1,50,000 =20,000
F = 5/15 - 3/15 = 2/15 × 1,50,000 =20,000
P = 2/15 × 1,50,000 =20,000
Z = 1/15 × 1,50,000 =10,000
E's Capital A/c Dr 20,000
F's Capital A/c Dr 20,000
To D's Capital A/c 10000
To P's Capital A/c 20,000
To Z's Capital A/c 10,000
Hence, the correct option is 2.
