Question : A, B and C are in partnership sharing profits and losses in the ratio of 5: 4: 1. Two new partners D and E are admitted. Profits are to be shared in the ratio of 3: 4: 2: 2:1 respectively. D is to pay Rs. 30,000 for his share of goodwill but E is unable to pay for goodwill. Both the new partners introduced Rs. 40,000 each as their capital.
Choose the correct option.
 

Option 1: Debiting Bank account 1,10,000 and  crediting D’s capital account Rs 40,000 and E’s capital account Rs 40,000  and premium for goodwill account with Rs 30,000
 

Option 2: Debiting premium for goodwill account with Rs 30,000  and  crediting A’s capital account with Rs 15,000 and B’s capital account with Rs 5000 and C’s capital account Rs 10,000
 

Option 3: Debiting premium for goodwill account Rs 30,000  and debiting  c’s capital account 12,000 and E’s current account 15000 and crediting  A’s capital account 45,000 and B’s capital account Rs 12,000

Option 4: Both 1 and 3 

Question : A and B who share profits in the ratio of 3: 2 had capitals of Rs. 2,00,000 and Rs.1,50,000 respectively. They admit C into partnership from 1st April, 2020 on the following terms for I/3rd share in future profits:
(i) That C to bring Rs. 2,00,000 as capital.
(ii) That C is unable to bring his share of goodwill, goodwill of the firm is valued at Rs.1,50,000. Choose the correct option.

Option 1: Debiting bank a/c Rs 3,00,000 and crediting C's capital account with Rs 3,00,000

Option 2: Debiting Bank account with Rs 2,00,000 and crediting C's capital with Rs 2,00,000

Option 3: Debiting C's current account Rs 50,000 and Crediting A capital account with Rs 30,000 and Rs 20,000

Option 4: Both 2 and 3

Question : A, B and C are partners sharing profits in a ratio of 5:3:2. D is admitted and new profit sharing ratio is agreed at 1:2:2:1. Goodwill is valued at Rs 1,20,000. What entry will be passed if a goodwill account is to be raised and written off?

Option 1: Goodwill account debited with Rs 20,000 and crediting old partner capital account and in their old profit sharing ratio

Option 2: Debiting Goodwill account debiting Rs 1,20,000 and old partner's capital account crediting and In their new profit sharing ratio

Option 3: All partner's capital account debiting with Rs 1,20,000 and crediting goodwill account with Rs 1,20,000

Option 4: Both 2 and 3

Question : A and B are partners sharing profits and losses in the ratio of 3: 2. They admit C into partnership for 1/4th share, which he takes 1/6th from A and 1/12th from B. Goodwill exists in the books at Rs. 20,000. C brings Rs. 18,000 as goodwill out of his share of Rs. 30,000. It was decided that the shortfall in amount shall be debited to C's Current Account. Choose the correct journal entry.

Option 1: Debiting A and B 's capital account with Rs 12,000 and Rs 8000 and Crediting goodwill account with Rs 20,000

Option 2: Debiting premium for Goodwill account Rs 18,000 and debiting C's current account with Rs 12,000 and crediting A with Rs 20,000 and B with Rs 10,000

Option 3: Both 1 and 2

Option 4: None of the above

Question : A and B are partners sharing profit in the ratio of 5:4. They admitted C in the firm for 1/3rd profit which he takes 2/9th share from A and 1/9th share from B and brings Rs 1500 as premium. Choose the necessary journal entries on c's admission.

Option 1: Debited cash a/c Rs 1500, credited C's capital account Rs 1500

Option 2: Debited cash account Rs 1500 and credited premium for goodwill account Rs 1500

Option 3: Debited premium for Goodwill account Rs 1500 and Credited A's capital account with Rs 1000 and B's capital account with Rs 500

Option 4: Both 2 and 3