Question : D, E, F, P and Z were partners in a firm sharing profits in the ratio 5:4:3:2:1 respectively. Unfortunately, P and Z met with a tragic car accident in which both of them died. The goodwill of the firm was valued at Rs. 1,50,000 and D, E and F decided to share future profits in the ratio of 4:6:5 respectively. At the time of adjustment of goodwill, E’s capital account will be debited/credited by Rs ---------
Option 1: Debited by Rs 10,000
Option 2: Credited by Rs 20,000
Option 3: Debited by Rs 20,000
Option 4: Credited by Rs 10,000
Correct Answer: Debited by Rs 20,000
Solution : Answer = Debited by Rs 20,000
G.Ratio = New Ratio - Old Ratio D= 4/15 - 5/15 = -1/15 × 1,50,000 = 10,000 E= 6/15 - 4/15 = 2/15 × 1,50,000 =20,000 F = 5/15 - 3/15 = 2/15 × 1,50,000 =20,000 P = 2/15 × 1,50,000 =20,000 Z = 1/15 × 1,50,000 =10,000 E's Capital A/c Dr 20,000 F's Capital A/c Dr 20,000 To D,s Capital A/c 10000 To P's Capital A/c 20,000 To Z's Capital A/c 10,000 Answer = Debited by 20,000 Hence, the correct option is 3.
Question : D, E, F, P and Z were partners in a firm sharing profits in the ratio 5:4:3:2:1 respectively. Unfortunately, P and Z met with a tragic car accident in which both of them died. The goodwill of the firm was valued at Rs. 1,50,000 and D, E and F decided to share future profits in the ratio of 4:6:5 respectively. At the time of adjustment of goodwill, Z's capital account will be debited/ credited by Rs ---------
Question : D, E, F, P and Z were partners in a firm sharing profits in the ratio 5:4:3:2:1 respectively. Unfortunately, P and Z met with a tragic car accident in which both of them died. The goodwill of the firm was valued at Rs. 1,50,000 and D, E and F decided to share future profits in the ratio of 4:6:5 respectively. At the time of adjustment of goodwill, F’s capital account will be debited/ credited by Rs ---------
Question : D, E, F, P and Z were partners in a firm sharing profits in the ratio 5:4:3:2:1 respectively. Unfortunately, P and Z met with a tragic car accident in which both of them died. The goodwill of the firm was valued at Rs. 1,50,000 and D, E and F decided to share future profits in the ratio of 4: 6: 5 respectively. At the time of adjustment of goodwill, D’s capital account will be debited/credited by Rs ---------
Option 2: Credited by Rs 10,000
Option 4: Credited by Rs 20,000
Question : D, E, F, P and Z were partners in a firm sharing profits in the ratio 5:4:3:2:1 respectively. Unfortunately, P and Z met with a tragic car accident in which both of them died. The goodwill of the firm was valued at Rs. 1,50,000 and D, E and F decided to share future profits in the ratio of 4:6:5 respectively. At the time of adjustment of goodwill, P's capital account will be debited/ credited by Rs ---------.
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
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