Question : A, B and C were partners sharing profits in the ratio of 2: 3: 4. On 15th March 2018 B died and the new profit-sharing ratio of A and C was 5: 4. On B's death the goodwill of the firm was valued at Rs.75,000. Choose the correct Journal entry with respect to the treatment of goodwill.
Option 1: Debited A and Credited B Rs 25,000
Option 2: Credited A and debited B Rs 25,000
Option 3: Debited B and Credited C Rs 25,000
Option 4: Debited A Rs 12,500, debited C Rs 12,500 and Credited B Rs 25,000
Correct Answer: Debited A and Credited B Rs 25,000
Solution : Answer = Debited A and Credited B Rs 25,000 G.Ratio= N.R- O.R A= $\frac{5}{9}$-$\frac{2}{9}$= $\frac{3}{9}$. C= $\frac{4}{9}$-$\frac{4}{9}$= 0. A's capital a/c.....Dr 25,000 To B's capital a/c 25,000(75000×$\frac{3}{9}$). Hence, the correct option is 1.
Question : A, B, C and D are partners sharing profits in the ratio of 1:4:3:2. D died on 15th December 2021 and the goodwill is valued at Rs.2,00,000. D's share of goodwill is to be adjusted into the capital accounts of A, B and C who decide to share future profits in the ratio of 4:3:3. Choose the correct journal entry.
Option 1: A debited by Rs 60,000 and debited B by Rs 20,000 and credited D by Rs 80,000
Option 2: Debited A by Rs 60,000 and credited B by Rs 20,000 and credited D by Rs 40,000
Option 3: Debited A by Rs 40,000 and B debited by Rs 40,000 and Credited D by Rs 80,000
Option 4: None of the above
Question : A, B and C were partners in a firm sharing profits in the ratio of 6:5:4. Their capitals were A-Rs. 1,00,000; B-Rs. 80,000 and C-Rs. 60,000 respectively. On 1st April, 2009, A retired from the firm and the new profit-sharing ratio between B and C was decided as 1:4.0n A's retirement, the goodwill of the firm was valued at Rs. 1,80,000. C's capital account will be debited/credited by Rs...........
Option 1: Debited by Rs 80,000
Option 2: Credited by Rs 80,000
Option 3: Debited by Rs 96,000
Option 4: Credited by Rs 96,000
Question : A, B, C and D were partners sharing profits in the ratio of 5:3:2:2. B died on 1st March 2018. The goodwill of the firm was valued at Rs. 6,00,000. A, C and D decided to share future profits equally. Q. C’s capital account will be ----
Option 1: Debited by Rs 50,000
Option 2: Credited by Rs 1,50,000
Option 3: Debited by Rs 1,50,00
Option 4: Debited by Rs 1,00,000
Question : A, B, C and D are partners sharing profits in the ratio of 3: 4: 3: 2, On the retirement of C, the goodwill was valued at Rs. 6,00,000. A, B and D decided to share future profits equally. C's capital account will be ....
Option 1: Debited by 1,50,000
Option 3: Debited by Rs 6,00,000
Option 4: Credited by Rs 6,00,000
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