170

You visited us 170 times! Enjoying our articles? Unlock Full Access!

Byju's Answer

Standard XII

Accountancy

Partner's Capital Accounts

Yash and Chir...

Question

Yash and Chirag are partners in a firm sharing profits and losses in 3 : 2. Their capitals were ₹2,40,000 and ₹1,60,000 respectively. There was a balance of ₹1,20,000 in general reserve and revaluation gain amounted to ₹30,000. They admitted Neha for 1/5th share in profits and losses for which she brought ₹1,80,000 as capital. Calculate the amount of goodwill of the firm:

[2 marks]

₹5,50,000

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

₹9,00,000

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

₹1,20,000

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

₹1,70,000

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

Open in App

Solution

The correct option is D ₹1,70,000

Suggest Corrections

Similar questions

Muskan and Manya were partners in a firm sharing profits and losses in the ratio of 7 : 3. Their capitals were Rs 2,00,000 and Rs 1,50,000 respectively. They admitted Anviksha on 1st April, 2018 as a new partner for $\frac{1}{6}$ th share in future profits. Anvisksha brought Rs 1,00,000 as her capital. Calculate the value of goodwill of the firm on the basis of the new partners' share of profit. It was also given that profit on revaluation was Rs 10,000.

Hemant and Nishant were partners in a firm sharing profits in the ratio of 3:2. Their capitals were Rs 1,60,000 and Rs 1,00,000 respectively. They admitted Somesh on 1st April, 2013 as new partner for 1/5th share in the future profits. Somesh brought Rs 1,20,000 as his capital. Calculate the value of goodwill of the firm and record necessary Journal entries for the above transactions on Somesh's admission.

Q. A, B and C were partners in a firm sharing profits and losses in the ratio of

2 : 2 : 1

respectively with the capital balances of Rs.

1, 00, 000

for A and B, for C Rs.

50, 000

. B declared to retire from the firm and balance in reserve on the date was Rs.

30, 000

. If goodwill of the firm was valued as Rs.

60, 000

and profit on revaluation was Rs.

14, 100

then what amount will be transferred to the loan account of B?

Q. A and B are partners in a firm sharing profits and losses in the ratio 3 : 1. They admit C for 1/4th share on 31st March, 2014 when their Balance Sheet was as follows:


Liabilities		₹	Assets		₹
Employees Provident Fund		17,000	Cash		6,100
Workmen Compensation Reserve		6,000	Stock		15,000
Investment Fluctuation Reserve		4,100	Debtors	50,000
Capital's A/cs:			Less : Provision for Doubtful Debts	2,000	48,000
A	54,000
B	35,000	89,000	Investments		7,000
			Goodwill		40,000

		1,16,100			1,16,100

The following adjustments were agreed upon:
(a) C brings in ₹ 16,000 as goodwill and proportionate capital.
(b) Bad debts amounted to ₹ 3,000.
(c) Market value of investment is ₹ 4,500.
(d) Liability on account of Workmen Compensation Reserve amounted to ₹ 2,000.
Prepare Revaluation Account and Partners' Capital Accounts.

Q. Madhu and Neha were partners in a firm sharing profits and losses in the ratio of

3 : 5

. Their fixed capitals were

R s . 4, 00, 000

and

R s . 6, 00, 000

respectively. On 1/1/2016, Tina was admitted as a new partner for

{\frac{1}{4}}^{t h}

share in the profits. Tina acquired her share of profit from Neha. Tina brought

R s . 4, 00, 000

as her capital which was to be kept fixed like the capitals of Madhu and Neha. Calculate the goodwill of the firm on Tina's admission and the new profit sharing ratio of Madhu, Neha and Tina. Also, pass necessary journal entry for the treatment of goodwill on Tina's admisson considering that Tina did not bring her share of goodwill premium in cash

Join BYJU'S Learning Program