You visited us 1 times! Enjoying our articles? Unlock Full Access!

Byju's Answer

Standard XII

Accountancy

Goodwill Valuation (Retirement)

A and B are p...

Question

A and B are partners with the capital Rs.50,000 and Rs.40,000 respectively.They share profits and losses equally. C is admitted on bringing Rs.50,000 as capital only and nothing was brought against goodwill. Goodwill in Balance sheet of Rs.10,000 is revalued as 30,000.What will be value of goodwill in the books after the admission of C?

R s .60, 000

No worries! We‘ve got your back. Try BYJU‘S free classes today!

R s .30, 000

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

R s .20, 000

No worries! We‘ve got your back. Try BYJU‘S free classes today!

R s .15, 000

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is A $R s .30, 000$
When a new partner is admitted into the partnership, assets are revalued and liabilities are reassessed. A revaluation account is opened for the purpose. This account is debited with all reduction in the value of assets and increase in liabilities and credited with increase in the value of assets and decrease in the value of liabilities.
Revalued figure of assets and liabilities are then shown in the balance sheet after admission of new partner.

Suggest Corrections

Similar questions

Q. A and B are partners with the capital Rs. 1,00,000 and Rs. 80,000 respectively. They share profits and losses equally. C is admitted on bringing Rs. 50,000 as capital only and nothing was bought against goodwill. Goodwill in Balance sheet of Rs. 40,000 is revalued as Rs. 70,000. What will be value of goodwill in the books after the admission of C?

Q. A & B having share capital of Rs.

10, 000

each, share profits and losses equally. They admit C as an equal partner and goodwill was valued as Rs.

30, 000

(book value NIL). C is to bring in Rs.

20, 000

as his capital and the necessary cash towards his share of Goodwill. Goodwill Account will not be shown in the books. If profit on revaluation is Rs.

13, 000

, find the closing balance of the capital account.

George and Henry are partners sharing profits in the ratio of 3 : 2. They decided to admit David as a new partner and to share future profits and losses equally.

David brings in Rs 50,000 as his capital. Goodwill of the firm is valued at Rs 60,000. Record the necessary journal entries :

(a) When no goodwill appears in the books

(b) When goodwill appears at Rs 50,000, and

Q. A & B are partners of a partnership firm sharing profits in the ratio of

5 : 3

with capital of Rs.

2, 50, 000

& Rs.

2, 00, 000

. C was admitted on the following terms: C would pay Rs.

50, 000

as capital and Rs.

16, 000

as Goodwill, for

1 / 5

th share of profit. Find the balance of capital accounts after admission of C.

A

and

B

are partners in firm sharing profits and losses in the ratio of

3 : 2

. They admit

C

into partnership for

1 / 5^{t h}

share.

C

brings in

R s . 30, 000

as capital and

R s . 10, 000

as goodwill. At the time of admission of

C

, goodwill appears in the Balance Sheet of

A

and

B

R s . 3, 000

. The new profit sharing ratio of the partners will be

5 : 3 : 2

. Pass necessary Journal entries.

Join BYJU'S Learning Program