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A, B, C are partners sharing profits in the ratio of 4:3:2. D is admitted for 2/9th share of profits and brings Rs. 30,000 as capital and 10,000 for his share of goodwill. The new profit sharing ratio between partners will be 3:2:2:2. Goodwill amount will be credited in the capital accounts of :
A only
A, B and C (equally)
A, and B (equally)
A, and C (equally)
The answer is c.
Abc answered |
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Sameer Sharma answered |
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Freedom Institute answered |
A, B, C are equal partners, they wanted to change the profit sharing ratio into 4:3:2. They raised the goodwill to Rs. 90,000 but want to write it off immediately. The effected accounts will be :
C’s Capital A/c Dr. 10,000To A’s Capital A/c 10,000
B’s Capital A/c Dr. A/c 10,000To A’s Capital A/c 10,000
C’s Capital A/c Dr. 10,000To B’s Capital A/c 10,000
A’s Capital A/c Dr. 10,000To C’s Capital A/c 10,000
The answer is d.
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Accounting for CA Foundation
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