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
Correct Answer: Krishna's capital Rs 3,66,000 and Suresh 2,22,000 and Rahul Rs 1,50,000
Solution : Answer = Krishna's capital Rs 3,66,000 and Suresh 2,22,000 and Rahul Rs 1,50,000
Total Goodwill = 2,40,000
Rahul's Share = 240000 x 1/5 = 48000 Hence, the correct option is 1.
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
Question : At the time of admission of a partner, what will be the effect of the following information? Balance in Workmen compensation reserve Rs. 28,000. Claim for workmen compensation Rs. 20,000.
Question : At the time of admission of a partner, what will be the effect of the following information? Balance in Workmen compensation reserve Rs. 1,40,000. Claim for workmen compensation Rs. 1,10,000.
Question : Hari and Kavi are partners sharing profits and losses in the ratio of 3: 2. They admit Ravi as a partner who contributes Rs. 30,000 as his capital for 1/5th share in the profits of the firm. It is decided that after Ravi's admission, the capitals of the Hari and Kavi will
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
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