A and B are partners of a partnership fi...

A and B are partners of a partnership firm sharing profits in the ratio of 3 : 2 respectively. C was admitted for 1/5th share of profit. Machinery would be appreciated by 10% (book value Rs.80,000) and building would be depreciated by 20% (Rs.2,00,000). Unrecorded debtors of Rs.1,250 would be brought into books now and a creditor amounting to Rs.2,750 died and need not pay anything on this account. What will be profit/loss on revaluation?

Loss Rs.28,000

Loss Rs.40,000

Profits Rs.28,000

Profits Rs.40,000

Text Solution

Verified by Experts

The correct Answer is:

Topper's Solved these Questions

ADMISSION OF A PARTNER
DK GOEL|Exercise MCQ Calculation of Sacrificing Ratio :|8 Videos
ACCOUNTING TREATMENT OF GOODWILL
DK GOEL|Exercise ILLUSTRATION 6.|1 Videos
CASH FLOW STATEMENT
DK GOEL|Exercise MULTIPLE CHOICE QUESTIONS (SELECT THE BEST ALTERNATE):|44 Videos

Similar Questions

Explore conceptually related problems

A and B are partners in a firm having a capital of ₹ 54,000 and ₹ 36,000 respectively. They admitted C for 1/3rd share in the profits C brought proportionate amount of capital. The Capital brought in by C would be

A and B are partners sharing profits in the ratio of 3 : 2. Their books show goodwill at RS.2,000. C is admitted as parter for 1/4th share of profits nad brings in RS.10,000 as his capital but is not able to bring in cash for his share of goodwill RS.3,000. Draft Journal entries.

X and Y are partners sharing profits in the ratio 2 : 3. They admitted Z for 1/5th share of profits, for which he paid Rs.1,20,000 against capital and Rs.60,000 as goodwill. Find the capital balances for each partner taking Z's capital as base capital.

A and B are partners sharing profits and losses in the ratio of 3 : 2. C is admitted into partnership for (1)/(5) th share in profit. He pays Rs.1,00,000 as goodwill. The ratio of the partners A, B and C in the new firm would be 3 : 1 : 1. Goodwill will be credited to:

X and Y are partners sharing profits in the ratio of 4 : 3. Z is admitted for 1/5th share and he brings in Rs.1,40,000 as his share of goodwill in cash of which Rs.1,20,000 is credited to X and remaining amount to Y. New profit sharing ratio will be :

DK GOEL-ADMISSION OF A PARTNER -MCQ Treatment of Goodwill :

When a new partner brings goodwill in Cash, it is credited to :
Text Solution
|
If the incoming partner brings the amount of goodwill in Cash and also...
Text Solution
|
If, at the time of admission, the revaluation A/c shows a profit, it s...
Text Solution
|
Revaluation Account or Profit and Loss Adjustment A/c is a
Text Solution
|
In case of admission of a partner, the entry for unrecorded investment...
Text Solution
|
When the balance sheet is prepared after the new partnership agreement...
Text Solution
|
Goodwill of a firm of A and B is valued at Rs. 30,000. Goodwill is app...
Text Solution
|
A and B are partners of a partnership firm sharing profits in the rati...
Text Solution
|
X and Y are partners sharing profits in the ratio 5 : 3. They admitted...
Text Solution
|
Ramesh and Suresh are partners sharing profits in the ratio of 2 : 1 r...
Text Solution
|
A and B are partners in a firm having a capital of ₹ 54,000 and ₹ 36,0...
Text Solution
|
A and B are in partnership sharing profits in the ratio of 3 : 2. They...
Text Solution
|
X and Y are partners sharing profits in the ratio of 4 : 3. Z is admit...
Text Solution
|
A and B are partners sharing profits in the ratio of 2 : 3. Their Bala...
Text Solution
|
A, B and C are partners sharing profits in ratio of 3 : 2 : 1. They ag...
Text Solution
|
X and Y are partners sharing profits in the ratio 2 : 3. They admitted...
Text Solution
|
A, B, C and D are partners. A and B share 2/3rd of profits equally and...
Text Solution
|
Sacrificing ratio is used to distribute ………. In case of admisstion of ...
Text Solution
|
X and Y are partners in a firm with capital of Rs.1,80,000 and Rs.2,00...
Text Solution
|
A and B are partners profits and losses in the ratio of 5 : 3. On admi...
Text Solution
|