Question

Following is the balance sheet of A, B, and C who share profits and losses of the business in the ratio of 3:2:1.

Additional Information:
a. On 1st April, 2021, they admitted D as a partner for 1/4th for which he brought ₹1,20,000 as his capital and ₹30,000 as a share of goodwill.
b.The value of furniture has increased by 10%.
c. Market value of investments brought down to ₹2,00,000.

Calculate the amount of goodwill credited to A's, B's, and C's capital account:

[2 marks]

• A. A - ₹10,000; B - ₹10,000; C - ₹10,000
• B. A - ₹15,000; B - ₹5,000; C - ₹10,000
• C. A - ₹5,000; B - ₹15,000; C - ₹10,000
• D. A - ₹15,000; B - ₹10,000; C - ₹5,000

Answer 1

The correct option is D A - ₹15,000; B - ₹10,000; C - ₹5,000

A's Capital A/c = ₹30,000 $\times {\frac{3}{6}}^{\ast }$
= ₹15,000
B's Capital A/c = ₹30,000 $\times {\frac{2}{6}}^{\ast }$
= ₹10,000
C's Capital A/c = ₹30,000 $\times {\frac{1}{6}}^{\ast }$
= ₹5,000
*Sacrificing Ratio = Old Ratio - New Ratio
A =$\frac{3}{6}-\frac{3}{8}$ = $\frac{6}{48}$

B =$\frac{2}{6}-\frac{2}{8}$ = $\frac{4}{48}$

C =$\frac{1}{6}-\frac{1}{8}$ = $\frac{2}{48}$

A : B : C :: 6 : 4 : 2 or 3 : 2 : 1