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Question : Krishna and Suresh were partners in a firm sharing profits in the ratio of 3: 1. With a capital of Rs 3,00,000 and Rs 2,00,000. On 1st April, 2015 they admitted Rahul as a new partner for 1/5 th share in profits of the firm. On the date of Rahul's admission the Balance Sheet of Krishna and Suresh showed a General Reserve of Rs. 1,20,000, a debit balance of Rs.60,000 in Profit and Loss A/c and Workmen Compensation Reserve of Rs. 1,50,000.

The following was agreed upon on Rahul's admission :
(i) Rahul will bring Rs. 1,50,000 as his capital and his share of goodwill premium in cash.
(ii) Goodwill of the firm be valued at Rs.2,40,000.
(iii) There was a claim of Workmen Compensation for Rs. 1,70,000,
(iii) The partners decided to share future profits in the ratio of 3: 1: 1.
The balance of partners capital after all adjustment and after admitted new partners will be

Option 1: Krishna's capital Rs 3,66,000 and Suresh 2,22,000 and Rahul Rs 1,50,000

Option 2: Krishna's capital account Rs 3,06,000 and Suresh Rs 2,02,000 Rahul Rs 1,50,000

Option 3: K's capital Rs 4,26,000 and Suresh Rs 3,42,000 and Rahul Rs 1,50,000

Option 4: None of the above


Team Careers360 24th Jan, 2024
Answer (1)
Team Careers360 25th Jan, 2024

Correct Answer: Krishna's capital Rs 3,66,000 and Suresh 2,22,000 and Rahul Rs 1,50,000


Solution : Answer = Krishna's capital Rs 3,66,000 and Suresh 2,22,000 and Rahul Rs 1,50,000

Krishna Suresh Rahul Krishna Suresh Rahul
Profit and loss(3:1) 45000 15000 - By Bal. B/D 3,00,000 2,00,000 -
Revaluation (loss) 15000 5000 - Reserve 90000 30000
Cash - - 1,50000
To Bal C/d 3,66,000 2,22000 1,50,000 Premium for Goodwill 36000 12000
4,26,000 2,42,000 1,50,000 4,26000 242000 1,50,000

Total Goodwill = 2,40,000

Rahul's Share = 240000 x 1/5 = 48000
Hence, the correct option is 1.

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