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A and B are partners sharing profits and...

A and B are partners sharing profits and losses as 2 : 1. C is admitted and profit sharing ratio becomes 4 : 3 : 2. Goodwill is valued at Rs.94,500. C brings required goodwill in cash. Goodwill amount will be Credited to :

A

A Rs.14,000 and B Rs.7,000

B

A Rs.12,000 and B Rs.9,000

C

A Rs.21,000

D

A Rs.94,500

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Knowledge Check

  • A, B and C partners sharing profits in the ratio of 4:3:2 decided to share profits equally. Goodwill of the firm is valued at Rs 10,800. In adjusting entry for goodwill:

    A
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    B
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    C
    A's Capital A/c Dr. by Rs 1,200, C's Capital A/c Cr. By Rs1,200,
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  • Chaman, Raman and Suman are partners sharing profits in the ratio of 5:3:2 . Raman retires, the new profit sharing ratio between Chaman and Suman will be 1:1 . The goodwill of the firm is valued at Rs. 1,00,000 Raman’s share of goodwill will be adjusted

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    B
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    C
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    by debiting Raman’s Capital account with Rs. 30,000.

  • Chaman, Raman and Suman are partners sharing profits in the ratio of 5:3:2 . Raman retires, the new profit sharing ratio between Chaman and Suman will be 1:1 . The goodwill of the firm is valued at Rs. 1,00,000 Raman’s share of goodwill will be adjusted

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    B
    by debiting Chaman’s Capital account and Suman’s Capital Account with Rs. 21,429 and 8,571 respectively.
    C
    by debiting only Suman’s Capital Account with Rs. 30,000.
    D
    by debiting Raman’s Capital account with Rs. 30,000.

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