Question :
R, B and L were partners in a firm sharing profits and losses in the ratio equally. With effect from 1st April, 2018 they decided to share future profits and losses in the ratio of 3:2:1. On that date their Balance Sheet showed a debit balance of Rs. 24,000 in Profit and Loss Account and a balance of Rs. 1,44,000 in General Reserve.
It was also agreed that:
(a) The goodwill of the firm be valued at Rs. 1,80,000.
(b) The Land (having book value of Rs. 3,00,000) will be valued at Rs. 4,80,000
Profit/Loss on revaluation are:
Option 1: Rs 1,40,000 profit
Option 2: Rs 1,80,000 profit
Option 3: Rs 1,80,000 loss
Option 4: None of the above
Correct Answer: Rs 1,80,000 profit
Solution : Answer = Rs 1,80,000 profit
Land A/c Dr 1,80,000
To Revaluation - 1,80,000
Revaluation A/c Dr 1,80,000
R's Capital A/c 60000
B's Capital A/c 60000
L's Capital A/c 60000
(old ratio 1:1:1) Hence, the correct option is 2.
R, B and L were partners in a firm sharing profits and losses in the ratio equally. With effect from 1st April, 2018 they decided to share future profits and losses in the ratio of 3:2:1. On that date their Balance Sheet showed a
Question : R, B and L were partners in a firm sharing profits and losses in the ratio of equally. With effect from 1st April, 2018 they decided to share future profits and losses in the ratio of 3:2:1. On that date their Balance Sheet showed a debit balance of Rs. 24,000 in Profit and
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
Question : A, M and R are partners sharing profit and losses in the ratio of 2:2:1. M retired from the firm. At that time goodwill of the firm was valued at Rs. 30,000. What contribution has to be made by A and R to pay M?
Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile