Question : E and F were partners in a firm sharing profits in the ratio of 3: 1. They admitted G as a new partner on 1-3-2017 for 1/3rd share. It was decided that E, F and G will share future profits equally. G brought Rs.50,000 in cash and machinery worth Rs.70,000 for his share of profit as premium for goodwill. Which journal entries will be passed for accounting for Goodwill .
Option 1:
Cash A/c
Dr.
50,000
Machinery A/c
70,000
To Premium for Goodwill A/c
1,20,000
(Cash and Machinery contributed by G on his admission, as his share of goodwill premium)
Premium for Goodwill A/c
F’s Capital A/c
30,000
To E’s Capital A/c
1,50,000
(Premium for goodwill brought in by G Credited to E along with 1/12 of the goodwill to be contributed by F due to gain in his profit sharing ratio)
Option 2:
Date
Particulars
L.F.
Dr. (Rs.)
Cr. (Rs.)
2017
March 1
.
Option 3:
To F’s Capital A/c
90,000
Option 4: None of the above
Correct Answer:
Solution : Answer (1) Working Note: Old Ratio of E and F= 3: 1 New Ratio of E, F and G=1: 1: 1 Sacrifice or Gain : E=$\frac{3}{4}-\frac{1}{3} \quad=\frac{9-4}{12}=\frac{5}{12}$(Sacrifice) F=$\frac{1}{4}-\frac{1}{3} \quad=\frac{3-4}{12}=\frac{1}{12}$(Gain)
Since F is gaining equal to 1/12 in the profits, therefore, he will also have to compensate E proportionately. Firm's goodwill on the basis of G's Share in profit $=1,20,000 \times 3 / 1=$ Rs.3,60,000. So, F will compensate $=$ Rs. $3,60,000 \times 1 / 12=$ Rs. 30,000. Hence, the correct option is 1.
Question : Read the following information carefully and answer the question
Revenue from Operations
8,75,000
Creditors
Bills Receivable
48,000
Bills Payable
52,000
Purchases
4,20,000
Trade Debtors
59,000
Option 1: 29.6 times
Option 2: 2.96 times
Option 3: 29.6%
Option 4: 2.69:1
Option 1: 30 days
Option 2: 60 days
Option 3: 45 days
Option 4: 15 days
Q. Calculate Trade Receivables Turnover Ratio.
Option 1: 8.18 times
Option 2: 8.23:1
Option 3: 8.18%
Option 4: 8.81:1
Q. Calculate Average Payment Period.
Option 1: 123 days
Option 2: 121 days
Option 3: 132 days
Option 4: 133 days
Question :
Match List-I with List-II on the basis of management principles:
List-I
(Meaning)
List-II
(Term)
(A)
Employee turnover should be minimised 1
(I)
Stability of personnel
(B)
Emphasises kindliness and justice 2
(II)
Equity
(C)
Chain of authority and communication frpm
top to bottom
(III)
Espirit de corps
(D)
Promotes team spirit ^(3)
(IV)
Scalar chain
Choose the correct answer from the options given below:
Option 1: (A) - (I), (B) - (II), (C) - (III), (D) - (IV)
Option 2: (A) - (I), (B) - (III), (C) - (II), (D) - (IV)
Option 3: (A) - (I), (B) - (II), (C) - (IV), (D) - (III)
Option 4: (A) - (III), (B) - (IV), (C) - (I), (D) - (II)
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