Question : Madan and Rakhi were partners sharing profits and losses in the ratio of 2 : 1. On 1st April, 2021 they admitted Amit as a new partner and new ratio was decided as 3:2:1. Goodwill of the firm was valued as Rs.1,20,000. Amit couldn't bring any amount for goodwill. Amount of goodwill share to be credited to Madan and Rakhi Account's will be:-
Option 1: Rs. 30,000 and Rs. 20,000 respectively
Option 2: Rs. 40,000 and Rs. 80,000 respectively
Option 3: Credited to Madan's Capital A/c Rs 20,000
Option 4: Credited to Raki’ Capital account Rs 20,000
Correct Answer: Credited to Madan's Capital A/c Rs 20,000
Solution : Answer = Credited to Madan's Capital A/c Rs 20,000
Total Goodwill = 1,20,000
Amit's share = 1,20,000 x 1/6 = 20,000
S.R = Old ratio - New ratio
Madan = 2/3 - 3/6 = 4-3/6 = 1/6 x 1,20,000 = 20,000
Rakhi = 1/3-2/6 = (2-2)/6 =0/6
Credited to Madan's Capital A/c Rs 20,000. Hence, the correct option is 2.
Question : M, N and O are partners in a firm sharing profits in the ratio of 3: 2: 1. Goodwill has been valued at Rs. 60,000. On N's retirement M and O agree to share profits equally. Amount credited to M's capital account will be:
Question : A, B and C are partners sharing profits in a ratio of 5:3:2. D is admitted and new profit sharing ratio is agreed at 1:2:2:1. Goodwill is valued at Rs 1,20,000. What entry will be passed if a goodwill account is to be raised and written off?
Question : A, B and C are in partnership sharing profits and losses in the ratio of 5: 4: 1. Two new partners D and E are admitted. Profits are to be shared in the ratio of 3: 4: 2: 2:1 respectively. D is to pay Rs. 30,000 for his share of goodwill but E is unable to pay for goodwill.
Question : A and B are partners sharing profit in the ratio of 5:4. They admitted C in the firm for 1/3rd profit which he takes 2/9th share from A and 1/9th share from B and brings Rs 1500 as premium. Choose the necessary journal entries on c's admission.
Question : P, R and A are partners sharing profit and losses in the ratio of 1:1:1. A retired on 1st April, 2021. P and R decided to continue the business share profit in the ratio of 3: 2. They also decided to give effect to the change In value of assets and liabilities without changing
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