Question : Y, V and K are partners sharing profits and losses in the ratio of 2: 2: I. V died, and at that time goodwill of the firm was valued at Rs. 30,000. The contribution to be made by Y and K, I in order to pay off V is __________and ___________ respectively.
Option 1: Rs 4,000 and Rs 8,000
Option 2: Rs 8,000 and Rs 4,000
Option 3: Rs 10,000 and Rs 5,000
Option 4: None of the above
Correct Answer: Rs 8,000 and Rs 4,000
Solution : Answer = Rs 8000 and Rs 4000 V's share of good will= $30,000 \times \frac{2}{5}$= 12,000 Y's capital a/c Dr 8,000[$12,000 \times \frac{2}{3}$] K's capital a/c Dr 4,000 To V's capital a/c 12,000 (G.Ratio= 2:1) Hence, the correct option is 2.
Question : J, M and R are sharing profits and losses equally. R retires and the goodwill is appearing in the books at Rs. 30,000. Goodwill of the firm is valued at Rs. 1,50,000. Calculate the net amount to be credited to R's Capital A/c.
Option 1: Rs 60,000
Option 2: Rs 50,000
Option 3: Rs 40,000
Option 4: Rs 10,000
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?
Option 1: Rs. 20,000 and Rs. 10,000
Option 2:
Rs. 15,000 and Rs. 15,000
Option 3: Rs. 8,000 and Rs. 4,000
Option 4:
Rs. 6,000 and Rs. 6,000
Question : X and Y are partners sharing profits and losses in the ratio of 3 : 2. They admit Z into partnership with 1/5th share in profits which he acquires equally from X and Y. Z brings in Rs.40,000 as goodwill in cash. Goodwill amount will be credited to -
Option 1: X: Rs.25,000; Y: Rs.15,000
Option 2: X: Rs.4,000; Y: Rs.4,000
Option 3: X: Rs.20,000; Y: Rs.20,000
Option 4: X: Rs.24,000; Y: Rs.16,000
Question : B, K and P are partners sharing profits in the ratio of 2:3:4. P died on 31st March 2012 and for this purpose, goodwill is valued at one and half year’s purchase of average super profits of the last three years. Profits for the last three years are as under : First-year Rs. 50,000 Second year Rs. 55,000 Third year Rs.75,000 The normal profits for similar firms is Rs.45,000. Choose the correct Journal entry with respect to the treatment of goodwill.
Option 1: Debited B by Rs 6,000 and K debited by Rs 4,000 and credited P’s account by Rs 10,000
Option 2: Debited B by Rs 4,000 and K debited by Rs 6,000 and credited P’s account by Rs 10,000
Option 3: Debited B by Rs 10,000 and credited P By Rs 10,000
Option 4: Debited K by Rs 10,000 and credited P by Rs 10,000
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