Commerce Exam  >  Commerce Questions  >  A B C are partners sharing profit in the rati... Start Learning for Free
A B C are partners sharing profit in the ratio of 5:3:2.on the 1st april 2016,the capital of the partners were 500000 300000 200000.the firms closes its book on 31st march every year.c died on 5 th april 2016.on that date goodwill valued at 30000 and c share of profit till yhe date of his death was 200.prepare c's capital a/c?
Most Upvoted Answer
A B C are partners sharing profit in the ratio of 5:3:2.on the 1st apr...
Calculation of C's Share of Profit

  • Ratio of profit sharing = 5:3:2

  • Total ratio = 10

  • Share of C = (2/10) = 0.2

  • C's share of profit till the date of his death (5th April 2016) = (0.2/12) x (5/365) x Total Profit

  • C's share of profit till date = (0.2/12) x (5/365) x Total Profit = X (Assuming Total Profit = Y)



Calculation of Goodwill

  • Goodwill = Total Value of the Firm - Total Capital of the Partners

  • Goodwill = (Total Profit/12) x 2 - 1000000

  • Goodwill = Y/6 - 1000000 = $30000

  • Y = $198000

  • Therefore, the Goodwill = $30000



Calculation of C's Capital Account

  • C's Capital on 1st April 2016 = $200000

  • Addition to C's Capital Account:


    • Share of Profit till Date ($X) = ?

    • Share in Goodwill ($30000 x 0.2) = $6000

    • Total = $X + $6000


  • Less:


    • Capital on the date of death ($200000)

    • Share of Profit till Date ($X)


  • C's Capital Account = Total Addition - Total Less



Therefore, C's Capital Account on the date of his death (5th April 2016) would be:

C's Capital Account = ($X + $6000) - ($200000 + $X) = -$194000

As C's Capital Account is in negative, his legal heirs will have to pay the amount to the firm.
Community Answer
A B C are partners sharing profit in the ratio of 5:3:2.on the 1st apr...
206200
Attention Commerce Students!
To make sure you are not studying endlessly, EduRev has designed Commerce study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in Commerce.
Explore Courses for Commerce exam

Similar Commerce Doubts

Top Courses for Commerce

A B C are partners sharing profit in the ratio of 5:3:2.on the 1st april 2016,the capital of the partners were 500000 300000 200000.the firms closes its book on 31st march every year.c died on 5 th april 2016.on that date goodwill valued at 30000 and c share of profit till yhe date of his death was 200.prepare c's capital a/c?
Question Description
A B C are partners sharing profit in the ratio of 5:3:2.on the 1st april 2016,the capital of the partners were 500000 300000 200000.the firms closes its book on 31st march every year.c died on 5 th april 2016.on that date goodwill valued at 30000 and c share of profit till yhe date of his death was 200.prepare c's capital a/c? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about A B C are partners sharing profit in the ratio of 5:3:2.on the 1st april 2016,the capital of the partners were 500000 300000 200000.the firms closes its book on 31st march every year.c died on 5 th april 2016.on that date goodwill valued at 30000 and c share of profit till yhe date of his death was 200.prepare c's capital a/c? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A B C are partners sharing profit in the ratio of 5:3:2.on the 1st april 2016,the capital of the partners were 500000 300000 200000.the firms closes its book on 31st march every year.c died on 5 th april 2016.on that date goodwill valued at 30000 and c share of profit till yhe date of his death was 200.prepare c's capital a/c?.
Solutions for A B C are partners sharing profit in the ratio of 5:3:2.on the 1st april 2016,the capital of the partners were 500000 300000 200000.the firms closes its book on 31st march every year.c died on 5 th april 2016.on that date goodwill valued at 30000 and c share of profit till yhe date of his death was 200.prepare c's capital a/c? in English & in Hindi are available as part of our courses for Commerce. Download more important topics, notes, lectures and mock test series for Commerce Exam by signing up for free.
Here you can find the meaning of A B C are partners sharing profit in the ratio of 5:3:2.on the 1st april 2016,the capital of the partners were 500000 300000 200000.the firms closes its book on 31st march every year.c died on 5 th april 2016.on that date goodwill valued at 30000 and c share of profit till yhe date of his death was 200.prepare c's capital a/c? defined & explained in the simplest way possible. Besides giving the explanation of A B C are partners sharing profit in the ratio of 5:3:2.on the 1st april 2016,the capital of the partners were 500000 300000 200000.the firms closes its book on 31st march every year.c died on 5 th april 2016.on that date goodwill valued at 30000 and c share of profit till yhe date of his death was 200.prepare c's capital a/c?, a detailed solution for A B C are partners sharing profit in the ratio of 5:3:2.on the 1st april 2016,the capital of the partners were 500000 300000 200000.the firms closes its book on 31st march every year.c died on 5 th april 2016.on that date goodwill valued at 30000 and c share of profit till yhe date of his death was 200.prepare c's capital a/c? has been provided alongside types of A B C are partners sharing profit in the ratio of 5:3:2.on the 1st april 2016,the capital of the partners were 500000 300000 200000.the firms closes its book on 31st march every year.c died on 5 th april 2016.on that date goodwill valued at 30000 and c share of profit till yhe date of his death was 200.prepare c's capital a/c? theory, EduRev gives you an ample number of questions to practice A B C are partners sharing profit in the ratio of 5:3:2.on the 1st april 2016,the capital of the partners were 500000 300000 200000.the firms closes its book on 31st march every year.c died on 5 th april 2016.on that date goodwill valued at 30000 and c share of profit till yhe date of his death was 200.prepare c's capital a/c? tests, examples and also practice Commerce tests.
Explore Courses for Commerce exam

Top Courses for Commerce

Explore Courses
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
10M+ students study on EduRev