Question : A and B are partners sharing profits & losses as 2: 1. C and D are admitted and the profit sharing ratio becomes 4: 2: 3: 1. Goodwill is valued at Rs.2,00,000. D brings the required goodwill and Rs.50,000 cash for Capital. C brings in Rs.50,000 cash and Rs. 40,000 worth of stock as his capital in addition to the required amount of goodwill in cash. Cash contributed by the new partner at the time of admission and the amount of goodwill brought by a new partner will be
Option 1: Debited bank with Rs 50,000 and credited premium for goodwill Rs 2,00,000
Option 2: Debited bank with Rs 1,10,000 and credited premium for goodwill Rs 60,000
Option 3: Debited bank Rs 50,000 and credited premium for goodwill Rs 2,00,000
Option 4: None of the above
Correct Answer: Debited bank Rs 50,000 and credited premium for goodwill Rs 2,00,000
Solution : Answer = Debited bank Rs 50,000 and credited premium for goodwill Rs 2,00,000 Bank A/c Dr. 70,000 To D's Capital A/c 50,000 To Premium tor Goodwill A/c 20,000 (The amount of capital and goodwill/premium brought in cash, i.e,"Rs. 50,000 + Rs.20,000))
Bank A/c Dr. 1,10,000 Stock A/c Dr. 40,000 To C's Capital A/c 90,000 To Premium for Goodwill A/c 60,000 (The amount of capital and goodwill brought in cash, i.e., Rs. 50,000+Rs 60,000 and stock worth Rs. 40,000 for capital)
The premium for Goodwill A/c Dr. 80,000 Tout's Capital A/c 53,333 To B's Capital A/c 26,667 (The amount of goodwill/premium transferred to old partners in sacrificing ratio i.e., 2: 1) Working Notes: (1) Calculation of goodwill of D's share and C's share :
Value of the total goodwill of the firm = Rs. 2,00,000 Therefore, D's share of goodwill = Rs. $2,00,000 \times \frac{1}{10}=$ Rs. 20,000 C's share of goodwill = Rs. $2,00,000 \times \frac{3}{10}=$ Rs. 60,000 (2) Calculation of Sacrificing Ratio: Sacrifice Ratio = Old Ratio-New Ratio
A's Sacrifice =$\frac{2}{3}-\frac{4}{10}=\frac{8}{30}$ B's Sacrifice =$\frac{1}{3}-\frac{2}{10}=\frac{4}{30}$ Thus Sacrifice Ratio =$\frac{8}{30}: \frac{4}{30}=8: 4=2: 1$ Hence, the correct option is 3.
Question : A and B are partners sharing profit equally. C was the manager who received a salary of Rs. 8,000 per month, in addition to a commission of 5% on net profit after charging such a commission. Profit for the year is Rs. 56,000 before charging salary. Find out the total remuneration of C.
Option 1: Rs. 1,56,000
Option 2: Rs. 1,76,000
Option 3: Rs. 1,52,000
Option 4: Rs. 1,74,000
Question : A, M and N are in partnership, sharing profits in the proportion of two-thirds, one-sixth and one-sixth respectively.
A died on the 30th June, 2018, three months after the annual accounts had been prepared and in accordance with the partnership agreement, his share of the profits to the date of death was estimated on the basis of the profit for the preceding year. In addition to this, the agreement provided for interest on capital at 5 per cent per annum on the balance standing to the credit of the capital account at the date of the last Balance Sheet, and also for goodwill, which was to be brought into account at two year’s purchase of the average profits for the last three years. A’s capital on 31st March, 2018 stood at Rs.1,20,000, and his drawings from then to the date of death amounted to Rs.9,000. The net profits of the business for the three preceding years amounted to Rs.33,500; Rs.41,500 and Rs.40,500, respectively. Amount payable to A’s executors________________.
Option 1: Rs. 1,70,583
Option 2: Rs 1,70,580
Option 3: Rs 1,70,853
Question : Directions: If A denotes addition, B denotes multiplication, C denotes subtraction, and D denotes division, then what will be the value of the following expression? 74 A (31 B 2) B 2 C (68 C 4) D (4 B 2) = ?
Option 1: 188
Option 2: 190
Option 3: 98
Option 4: 160
Question : Directions: If A denotes addition, B denotes multiplication, C denotes subtraction, and D denotes division, then what will be the value of the following expression? 15 B (14 C 7) A 25 D (18 C 13) C 8 B (2 A 3) =?
Option 1: 105
Option 2: 115
Option 3: 70
Option 4: 40
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