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P and Q are partners sharing Profits in the ratio of 2:1. R is admitted to the partnership with effect from 1st April on the term that he will bring Rs. 20,000 as his capital for 1/4th share and pays Rs. 9,000 for goodwill, half of which is to be withdrawn by P and Q. If profit on revaluation is Rs. 6,000 and opening capital of P is Rs. 40,000 and of Q is Rs. 30,000, find the closing balance of each capital.
- a)47,000:33.500:20,000.
- b)50,000:35,000:20,000.
- c)40,000:30,000:20,000.
- d)41,000:30,500:29,000.
Correct answer is option 'A'. Can you explain this answer?
Verified Answer
P and Q are partners sharing Profits in the ratio of 2:1. R is admitte...
Given:
- P and Q are partners sharing profits in the ratio of 2:1.
- R is admitted to the partnership with effect from 1st April.
- R brings Rs. 20,000 as his capital for 1/4th share.
- R pays Rs. 9,000 for goodwill, half of which is to be withdrawn by P and Q.
- Profit on revaluation is Rs. 6,000.
- Opening capital of P is Rs. 40,000 and of Q is Rs. 30,000.
To find:
Closing balance of each capital.
Step 1: Calculate the share of R in the profits and capital:
- R's share in the profits = 1/4 * total profits
- R's share in the capital = Rs. 20,000
Step 2: Calculate the total profits:
- Let the total profits be x.
- P's share in the profits = 2/3 * x
- Q's share in the profits = 1/3 * x
- R's share in the profits = 1/4 * x
Given that half of the goodwill payment is to be withdrawn by P and Q, we can calculate the goodwill payment as follows:
- Goodwill payment = Rs. 9,000
- Amount withdrawn by P and Q = 1/2 * Rs. 9,000 = Rs. 4,500
Step 3: Calculate the new capital of P and Q after the withdrawal:
- P's new capital = Opening capital + Share of profits - Amount withdrawn
- Q's new capital = Opening capital + Share of profits - Amount withdrawn
Step 4: Calculate the total capital:
- Total capital = P's capital + Q's capital + R's capital
Step 5: Calculate the closing balance of each capital:
- Closing balance of P = P's new capital / Total capital * x
- Closing balance of Q = Q's new capital / Total capital * x
- Closing balance of R = R's capital / Total capital * x
Now let's calculate the values:
Given:
- Opening capital of P = Rs. 40,000
- Opening capital of Q = Rs. 30,000
- Profit on revaluation = Rs. 6,000
- Goodwill payment = Rs. 9,000
- Amount withdrawn by P and Q = Rs. 4,500
- R's capital = Rs. 20,000
Step 1: Calculate the share of R in the profits and capital:
- R's share in the profits = 1/4 * total profits = 1/4 * x
- R's share in the capital = Rs. 20,000
Step 2: Calculate the total profits:
- P's share in the profits = 2/3 * x
- Q's share in the profits = 1/3 * x
- R's share in the profits = 1/4 * x
Given that half of the goodwill payment is to be withdrawn by P and Q, we can calculate the goodwill payment as follows:
- Goodwill payment = Rs. 9,000
- Amount withdrawn by P and Q =
Most Upvoted Answer
P and Q are partners sharing Profits in the ratio of 2:1. R is admitte...
Understanding the Partnership Admission
When R is admitted to the partnership, the existing partners P and Q need to adjust their capital accounts according to the new arrangement.
Step 1: Initial Capital and Profit Sharing Ratio
- P's Capital: Rs. 40,000
- Q's Capital: Rs. 30,000
- Existing Profit Sharing Ratio: P:Q = 2:1
Step 2: R's Capital Contribution
- R brings in Rs. 20,000 for a 1/4th share.
- This implies the total capital of the partnership after R's admission will be Rs. 80,000 (Rs. 20,000 / 1/4).
Step 3: Goodwill Payment
- R pays Rs. 9,000 for goodwill.
- P and Q will withdraw half of this amount: Rs. 4,500 each.
Step 4: Revaluation of Assets
- Profit on revaluation is Rs. 6,000.
- This revaluation profit is shared in the existing ratio (2:1):
- P's share: Rs. 4,000
- Q's share: Rs. 2,000
Step 5: Closing Balances Calculation
- Closing Capital of P:
- Initial Capital: Rs. 40,000
- Plus Revaluation Profit: Rs. 4,000
- Less Goodwill Withdrawal: Rs. 4,500
- Closing Balance: Rs. 39,500 + Rs. 4,000 - Rs. 4,500 = Rs. 47,000
- Closing Capital of Q:
- Initial Capital: Rs. 30,000
- Plus Revaluation Profit: Rs. 2,000
- Less Goodwill Withdrawal: Rs. 4,500
- Closing Balance: Rs. 30,000 + Rs. 2,000 - Rs. 4,500 = Rs. 33,500
- Closing Capital of R:
- Capital Contribution: Rs. 20,000
Final Closing Balances
- P: Rs. 47,000
- Q: Rs. 33,500
- R: Rs. 20,000
Thus, the closing balances of P, Q, and R are Rs. 47,000; Rs. 33,500; and Rs. 20,000 respectively, confirming that the correct answer is option 'A'.
When R is admitted to the partnership, the existing partners P and Q need to adjust their capital accounts according to the new arrangement.
Step 1: Initial Capital and Profit Sharing Ratio
- P's Capital: Rs. 40,000
- Q's Capital: Rs. 30,000
- Existing Profit Sharing Ratio: P:Q = 2:1
Step 2: R's Capital Contribution
- R brings in Rs. 20,000 for a 1/4th share.
- This implies the total capital of the partnership after R's admission will be Rs. 80,000 (Rs. 20,000 / 1/4).
Step 3: Goodwill Payment
- R pays Rs. 9,000 for goodwill.
- P and Q will withdraw half of this amount: Rs. 4,500 each.
Step 4: Revaluation of Assets
- Profit on revaluation is Rs. 6,000.
- This revaluation profit is shared in the existing ratio (2:1):
- P's share: Rs. 4,000
- Q's share: Rs. 2,000
Step 5: Closing Balances Calculation
- Closing Capital of P:
- Initial Capital: Rs. 40,000
- Plus Revaluation Profit: Rs. 4,000
- Less Goodwill Withdrawal: Rs. 4,500
- Closing Balance: Rs. 39,500 + Rs. 4,000 - Rs. 4,500 = Rs. 47,000
- Closing Capital of Q:
- Initial Capital: Rs. 30,000
- Plus Revaluation Profit: Rs. 2,000
- Less Goodwill Withdrawal: Rs. 4,500
- Closing Balance: Rs. 30,000 + Rs. 2,000 - Rs. 4,500 = Rs. 33,500
- Closing Capital of R:
- Capital Contribution: Rs. 20,000
Final Closing Balances
- P: Rs. 47,000
- Q: Rs. 33,500
- R: Rs. 20,000
Thus, the closing balances of P, Q, and R are Rs. 47,000; Rs. 33,500; and Rs. 20,000 respectively, confirming that the correct answer is option 'A'.
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Community Answer
P and Q are partners sharing Profits in the ratio of 2:1. R is admitte...
CAPITALS OF
P=40000 (op. bal)+ 4000 (reval)+ 6000 (goodwill)- [3000](withdrawn) = 47000
Q= 30000+ 2000+ 3000 -1500 =33500
R=20000
P=40000 (op. bal)+ 4000 (reval)+ 6000 (goodwill)- [3000](withdrawn) = 47000
Q= 30000+ 2000+ 3000 -1500 =33500
R=20000
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P and Q are partners sharing Profits in the ratio of 2:1. R is admitted to the partnership with effect from 1st April on the term that he will bring Rs. 20,000 as his capital for 1/4th share and pays Rs. 9,000 for goodwill, half of which is to be withdrawn by P and Q. If profit on revaluation is Rs. 6,000 and opening capital of P is Rs. 40,000 and of Q is Rs. 30,000, find the closing balance of each capital.a)47,000:33.500:20,000.b)50,000:35,000:20,000.c)40,000:30,000:20,000.d)41,000:30,500:29,000.Correct answer is option 'A'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about P and Q are partners sharing Profits in the ratio of 2:1. R is admitted to the partnership with effect from 1st April on the term that he will bring Rs. 20,000 as his capital for 1/4th share and pays Rs. 9,000 for goodwill, half of which is to be withdrawn by P and Q. If profit on revaluation is Rs. 6,000 and opening capital of P is Rs. 40,000 and of Q is Rs. 30,000, find the closing balance of each capital.a)47,000:33.500:20,000.b)50,000:35,000:20,000.c)40,000:30,000:20,000.d)41,000:30,500:29,000.Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for P and Q are partners sharing Profits in the ratio of 2:1. R is admitted to the partnership with effect from 1st April on the term that he will bring Rs. 20,000 as his capital for 1/4th share and pays Rs. 9,000 for goodwill, half of which is to be withdrawn by P and Q. If profit on revaluation is Rs. 6,000 and opening capital of P is Rs. 40,000 and of Q is Rs. 30,000, find the closing balance of each capital.a)47,000:33.500:20,000.b)50,000:35,000:20,000.c)40,000:30,000:20,000.d)41,000:30,500:29,000.Correct answer is option 'A'. Can you explain this answer?.
P and Q are partners sharing Profits in the ratio of 2:1. R is admitted to the partnership with effect from 1st April on the term that he will bring Rs. 20,000 as his capital for 1/4th share and pays Rs. 9,000 for goodwill, half of which is to be withdrawn by P and Q. If profit on revaluation is Rs. 6,000 and opening capital of P is Rs. 40,000 and of Q is Rs. 30,000, find the closing balance of each capital.a)47,000:33.500:20,000.b)50,000:35,000:20,000.c)40,000:30,000:20,000.d)41,000:30,500:29,000.Correct answer is option 'A'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about P and Q are partners sharing Profits in the ratio of 2:1. R is admitted to the partnership with effect from 1st April on the term that he will bring Rs. 20,000 as his capital for 1/4th share and pays Rs. 9,000 for goodwill, half of which is to be withdrawn by P and Q. If profit on revaluation is Rs. 6,000 and opening capital of P is Rs. 40,000 and of Q is Rs. 30,000, find the closing balance of each capital.a)47,000:33.500:20,000.b)50,000:35,000:20,000.c)40,000:30,000:20,000.d)41,000:30,500:29,000.Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for P and Q are partners sharing Profits in the ratio of 2:1. R is admitted to the partnership with effect from 1st April on the term that he will bring Rs. 20,000 as his capital for 1/4th share and pays Rs. 9,000 for goodwill, half of which is to be withdrawn by P and Q. If profit on revaluation is Rs. 6,000 and opening capital of P is Rs. 40,000 and of Q is Rs. 30,000, find the closing balance of each capital.a)47,000:33.500:20,000.b)50,000:35,000:20,000.c)40,000:30,000:20,000.d)41,000:30,500:29,000.Correct answer is option 'A'. Can you explain this answer?.
Solutions for P and Q are partners sharing Profits in the ratio of 2:1. R is admitted to the partnership with effect from 1st April on the term that he will bring Rs. 20,000 as his capital for 1/4th share and pays Rs. 9,000 for goodwill, half of which is to be withdrawn by P and Q. If profit on revaluation is Rs. 6,000 and opening capital of P is Rs. 40,000 and of Q is Rs. 30,000, find the closing balance of each capital.a)47,000:33.500:20,000.b)50,000:35,000:20,000.c)40,000:30,000:20,000.d)41,000:30,500:29,000.Correct answer is option 'A'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA Foundation.
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Here you can find the meaning of P and Q are partners sharing Profits in the ratio of 2:1. R is admitted to the partnership with effect from 1st April on the term that he will bring Rs. 20,000 as his capital for 1/4th share and pays Rs. 9,000 for goodwill, half of which is to be withdrawn by P and Q. If profit on revaluation is Rs. 6,000 and opening capital of P is Rs. 40,000 and of Q is Rs. 30,000, find the closing balance of each capital.a)47,000:33.500:20,000.b)50,000:35,000:20,000.c)40,000:30,000:20,000.d)41,000:30,500:29,000.Correct answer is option 'A'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
P and Q are partners sharing Profits in the ratio of 2:1. R is admitted to the partnership with effect from 1st April on the term that he will bring Rs. 20,000 as his capital for 1/4th share and pays Rs. 9,000 for goodwill, half of which is to be withdrawn by P and Q. If profit on revaluation is Rs. 6,000 and opening capital of P is Rs. 40,000 and of Q is Rs. 30,000, find the closing balance of each capital.a)47,000:33.500:20,000.b)50,000:35,000:20,000.c)40,000:30,000:20,000.d)41,000:30,500:29,000.Correct answer is option 'A'. Can you explain this answer?, a detailed solution for P and Q are partners sharing Profits in the ratio of 2:1. R is admitted to the partnership with effect from 1st April on the term that he will bring Rs. 20,000 as his capital for 1/4th share and pays Rs. 9,000 for goodwill, half of which is to be withdrawn by P and Q. If profit on revaluation is Rs. 6,000 and opening capital of P is Rs. 40,000 and of Q is Rs. 30,000, find the closing balance of each capital.a)47,000:33.500:20,000.b)50,000:35,000:20,000.c)40,000:30,000:20,000.d)41,000:30,500:29,000.Correct answer is option 'A'. Can you explain this answer? has been provided alongside types of P and Q are partners sharing Profits in the ratio of 2:1. R is admitted to the partnership with effect from 1st April on the term that he will bring Rs. 20,000 as his capital for 1/4th share and pays Rs. 9,000 for goodwill, half of which is to be withdrawn by P and Q. If profit on revaluation is Rs. 6,000 and opening capital of P is Rs. 40,000 and of Q is Rs. 30,000, find the closing balance of each capital.a)47,000:33.500:20,000.b)50,000:35,000:20,000.c)40,000:30,000:20,000.d)41,000:30,500:29,000.Correct answer is option 'A'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice P and Q are partners sharing Profits in the ratio of 2:1. R is admitted to the partnership with effect from 1st April on the term that he will bring Rs. 20,000 as his capital for 1/4th share and pays Rs. 9,000 for goodwill, half of which is to be withdrawn by P and Q. If profit on revaluation is Rs. 6,000 and opening capital of P is Rs. 40,000 and of Q is Rs. 30,000, find the closing balance of each capital.a)47,000:33.500:20,000.b)50,000:35,000:20,000.c)40,000:30,000:20,000.d)41,000:30,500:29,000.Correct answer is option 'A'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
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