Question : R, B and L were partners in a firm sharing profits and losses in the ratio of equally. With effect from 1st April, 2018 they decided to share future profits and losses in the ratio of 3:2:1. On that date their Balance Sheet showed a debit balance of Rs. 24,000 in Profit and Loss Account and a balance of Rs. 1,44,000 in General Reserve.

It was also agreed that:

(a) The goodwill of the firm be valued at Rs. 1,80,000.

(b) The Land (having book value of Rs. 3,00,000) will be valued at Rs. 4,80,000.

Adjustment entry for goodwill is?

Option 1: Debited R by Rs 30,000 and credited B Rs 30,000

Option 2: Debited R by Rs 30,000 and credited L Rs 30,000

Option 3: Debited R by Rs 30,000 and debited L Rs 20,000 and Debited  B by Rs 10,000

Option 4: None of these

Question :

R, B and L were partners in a firm sharing profits and losses in the ratio   equally. With effect from 1st April, 2018 they decided to share future profits and losses in the ratio of 3:2:1. On that date their Balance Sheet showed a debit balance of Rs. 24,000 in Profit and Loss Account and a balance of Rs. 1,44,000 in General Reserve.

It was also agreed that:

(a) The goodwill of the firm be valued at Rs. 1,80,000.

(b) The Land (having book value of Rs. 3,00,000) will be valued at Rs. 4,80,000

Profit/Loss on revaluation are:

Option 1: Rs 1,40,000 profit

Option 2: Rs 1,80,000 profit 

Option 3: Rs 1,80,000 loss 

Option 4: None of the above 

Question :

R, B and L were partners in a firm sharing profits and losses in the ratio   equally. With effect from 1st April, 2018 they decided to share future profits and losses in the ratio of 3:2:1. On that date their Balance Sheet showed a debit balance of Rs. 24,000 in Profit and Loss Account and a balance of Rs. 1,44,000 in General Reserve.

It was also agreed that:

(a) The goodwill of the firm be valued at Rs. 1,80,000.

(b) The Land (having book value of Rs. 3,00,000) will be valued at Rs. 4,80,000.

 Treatment of General Reserve?

Option 1: Debited each partners capital account with Rs 48,000 

Option 2: Credited each partners capital account by Rs 48,000

Option 3: Both 1 and 2 

Option 4: None of the above 

Question : If total assets of a firm are Rs.12,00,000 and total liabilities are Rs.2,40,000, what will be the capitals of P, Q and R if they share profits in the ratio of their capitals and profit sharing ratio is 1 : 2 : 3 - 

Option 1: P: Rs.4,80,000; Q: Rs.3,20,000; R: Rs.1,60,000

Option 2: P: Rs.1,60,000; Q: Rs. 3,20,000; R: Rs. 4,80,000

Option 3: P: Rs. 2,00,000; Q: Rs. 4,00,000; R: Rs. 6,00,000

Option 4: P: Rs. 6,00,000; Q: Rs. 4,00,000; R: Rs. 2,00,000

Question : A, B and C are partners in a firm sharing profits and losses in the ratio of 3:2:1. The partners decide to share future profits and losses in the ratio of 5:3:2. Each partner’s gain or sacrifice due to change in the ratio will be :

Option 1: A sacrifice 1/30, B Gain 1/30, Z Nil 

Option 2:  A Nil, B sacrifice 1/30 and C gain 1/30

Option 3: A gain 1/30, B Nil, C sacrifice 1/30

Option 4: A Nil, B gain 1/30 and C sacrifice 1/30