Question : Krishna and Suresh were partners in a firm sharing profits in the ratio of 3: 1. With a capital of Rs 3,00,000 and Rs 2,00,000. On 1st April, 2015 they admitted Rahul as a new partner for 1/5 th share in profits of the firm. On the date of Rahul's admission the Balance Sheet of Krishna and Suresh showed a General Reserve of Rs. 1,20,000, a debit balance of Rs.60,000 in Profit and Loss A/c and Workmen Compensation Reserve of Rs. 1,50,000.

The following was agreed upon on Rahul's admission :
(i) Rahul will bring Rs. 1,50,000 as his capital and his share of goodwill premium in cash.
(ii) Goodwill of the firm be valued at Rs.2,40,000.
(iii) There was a claim of Workmen Compensation for Rs. 1,70,000,
(iii) The partners decided to share future profits in the ratio of 3: 1: 1.
The balance of partners capital after all adjustment and after admitted new partners will be

Option 1: Krishna's capital Rs 3,66,000 and Suresh 2,22,000 and Rahul Rs 1,50,000

Option 2: Krishna's capital account Rs 3,06,000 and Suresh Rs 2,02,000 Rahul Rs 1,50,000

Option 3: K's capital Rs 4,26,000 and Suresh Rs 3,42,000 and Rahul Rs 1,50,000

Option 4: None of the above

Question : A, B and C are partners in a firm sharing profits and losses in the ratio of 3: 2: 1. D is admitted as a new partner for 1/4 share in the profits of the firm, which he gets 1/8 from A, and 1/16 each from B and C. The total capital of the new firm after D's admission will be Rs. 2,40,000. D is required to bring in cash equal to 1/4 of the total capital of the new firm. The capitals of the old partners also have to be adjusted in proportion of their profit sharing ratio. The capitals of A, B and C after all adjustments in respect of goodwill and revaluation of assets and liabilities have been made are A Rs. 80,000 , B Rs. 30,000 and C Rs. 28,000 . Calculate the capitals of all the partners and record the necessary journal entries for doing adjustments in respect of capitals according to the agreement between the partners.

Option 1: A will bring Rs 10,000 , B brings Rs 35,000 and C withdrawn 3000

Option 2: A will bring Rs 10,000 and B withdrew Rs 35,000 and C bring Rs 3,000

Option 3: A bring Rs 10,000 and B withdrew Rs 35,000 and C withdrew Rs 3,000

Option 4: None of the above

Question : Cake and Muffin are partners sharing profits and losses in the ratio of 5: 4. On 1st April, 2016, they admit Cookie as a new partner for 1/6th share in the profits of the firm and the new ratio agreed upon is 3: 2: 1.

Goodwill, at the time of Cookie's admission is to be valued on the basis of capitalisation of the average profits of the last three years. Profits for the last three years were :
Year ended 31st March, 2014 Rs.39,000 (including an abnormal loss of Rs. 9,000).
Year ended 31st March, 2015 Rs.83,000 (including an abnormal gain of Rs.8,000).
Year ended 31st March, 2016 Rs.72,000.

On 1st April, 2016, the firm had assets of Rs.8,00,000. Its creditors amounted to Rs.3,60,000. The firm had a Reserve Fund of Rs. 40,000 while Partners' Capital Accounts showed a balance of Rs.4,00,000.

The normal rate of return expected from this class of business is 13%.

Cookie brings in Rs.2,00,000 for her capital but is unable to bring in cash for her share of goodwill.

The amount of cookie brought his share of goodwill will be .....

Option 1: Rs 60,000

Option 2: Rs 50,000

Option 3: Rs 10,000

Option 4: None of the above

Question : When goodwill existing in the books is written off at the time of admission of a partner it is transferred to Partners' Capital Accounts in their

Option 1: Old profit-sharing ratio

Option 2: New profit-sharing ratio

Option 3: Sacrificing ratio

Option 4: Gaining ratio

Question : X and Y are partners with a capital of Rs 5,000 each. They admitted Z as partners with 1/4 share in the profit of the firm. Z brings Rs 8,000 as his share of capital. The profit and loss a/c showed a credit balance e of Rs 4,000 as of the date of admission of Z. Journal entry to record goodwill will be.

Option 1: Z's capital A/c Dr 2500
To X's capital account 1250
To Y's capital account 1250

Option 2: Z's capital account Dr 5000
To X's capital account 2500
To Y's capital account Rs 2500

Option 3: Z's capital account Dr 10,000
To X's capital account 5000
To Y's capital Account 5000

Option 4: None of the above