CA Foundation Exam > CA Foundation Questions > A, B and C are partners sharing profits and l...
Start Learning for Free
A, B and C are partners sharing profits and loss in the ratio 3:2:1. They decide to change their profit sharing ratio to 2:2:1. To give effect to this new profit sharing ratio they decide to value the goodwill at Rs. 30,000. Pass the necessary journal entry if Goodwill not appearing in the old balance sheet and should not appear in the new balance sheet.
- a)B’s Capital Account Dr. 2,000
C’s Capital Account Dr. 1,000
To A’s Capital Account 3,000 - b)Goodwill Account Dr. 30,000
To A’s Capital Account 15,000
To B’s Capital Account 10,000
To C’s Capital Account 5,000 - c)A’s Capital Account Dr. 12,000
B’s Capital Account Dr. 12,000
C’s Capital Account Dr. 6,000
To Goodwill Account 30,000 - d)A’s Capital Account Dr. 3,000
To B’s Capital Account 2,000
To C’s Capital Account 1,000
Correct answer is option 'A'. Can you explain this answer?
| FREE This question is part of | Download PDF Attempt this Test |
Most Upvoted Answer
A, B and C are partners sharing profits and loss in the ratio 3:2:1. T...
Free Test
FREE
| Start Free Test |
Community Answer
A, B and C are partners sharing profits and loss in the ratio 3:2:1. T...
Journal entry to adjust the new profit sharing ratio and value the goodwill:
a) Bs Capital Account Dr. 2,000
Cs Capital Account Dr. 1,000
To As Capital Account 3,000
Explanation:
In the given question, the partners A, B, and C have decided to change their profit sharing ratio to 2:2:1. This means that A and B will now have equal shares, while C's share will remain the same. To adjust this change, the capital accounts of B and C need to be debited and the capital account of A needs to be credited.
b) Goodwill Account Dr. 30,000
To As Capital Account 15,000
To Bs Capital Account 10,000
To Cs Capital Account 5,000
Explanation:
To value the goodwill at Rs. 30,000 and ensure that it does not appear in the old or new balance sheet, the goodwill account is debited. The amount of Rs. 30,000 is then distributed among the partners in the new profit sharing ratio. A receives Rs. 15,000 (2/5 of Rs. 30,000), B receives Rs. 10,000 (2/5 of Rs. 30,000), and C receives Rs. 5,000 (1/5 of Rs. 30,000).
c) As Capital Account Dr. 12,000
Bs Capital Account Dr. 12,000
Cs Capital Account Dr. 6,000
To Goodwill Account 30,000
Explanation:
This journal entry is incorrect because it debits the capital accounts of all the partners and credits the goodwill account. However, the correct entry should debit the goodwill account and credit the capital accounts of the partners.
d) As Capital Account Dr. 3,000
To Bs Capital Account 2,000
To Cs Capital Account 1,000
Explanation:
This journal entry is incorrect because it only adjusts the capital accounts of the partners according to the new profit sharing ratio. However, it does not account for the valuation of goodwill. The correct entry should include the debit to the goodwill account and the distribution of its value among the partners.
a) Bs Capital Account Dr. 2,000
Cs Capital Account Dr. 1,000
To As Capital Account 3,000
Explanation:
In the given question, the partners A, B, and C have decided to change their profit sharing ratio to 2:2:1. This means that A and B will now have equal shares, while C's share will remain the same. To adjust this change, the capital accounts of B and C need to be debited and the capital account of A needs to be credited.
b) Goodwill Account Dr. 30,000
To As Capital Account 15,000
To Bs Capital Account 10,000
To Cs Capital Account 5,000
Explanation:
To value the goodwill at Rs. 30,000 and ensure that it does not appear in the old or new balance sheet, the goodwill account is debited. The amount of Rs. 30,000 is then distributed among the partners in the new profit sharing ratio. A receives Rs. 15,000 (2/5 of Rs. 30,000), B receives Rs. 10,000 (2/5 of Rs. 30,000), and C receives Rs. 5,000 (1/5 of Rs. 30,000).
c) As Capital Account Dr. 12,000
Bs Capital Account Dr. 12,000
Cs Capital Account Dr. 6,000
To Goodwill Account 30,000
Explanation:
This journal entry is incorrect because it debits the capital accounts of all the partners and credits the goodwill account. However, the correct entry should debit the goodwill account and credit the capital accounts of the partners.
d) As Capital Account Dr. 3,000
To Bs Capital Account 2,000
To Cs Capital Account 1,000
Explanation:
This journal entry is incorrect because it only adjusts the capital accounts of the partners according to the new profit sharing ratio. However, it does not account for the valuation of goodwill. The correct entry should include the debit to the goodwill account and the distribution of its value among the partners.
Attention CA Foundation Students!
To make sure you are not studying endlessly, EduRev has designed CA Foundation study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in CA Foundation.
|
Explore Courses for CA Foundation exam
|
|
Similar CA Foundation Doubts
Top Courses for CA FoundationView all
A, B and C are partners sharing profits and loss in the ratio 3:2:1. They decide to change their profit sharing ratio to 2:2:1. To give effect to this new profit sharing ratio they decide to value the goodwill at Rs. 30,000. Pass the necessary journal entry if Goodwill not appearing in the old balance sheet and should not appear in the new balance sheet.a)B’s Capital Account Dr. 2,000C’s Capital Account Dr. 1,000 To A’s Capital Account 3,000b)Goodwill Account Dr. 30,000 To A’s Capital Account 15,000 To B’s Capital Account 10,000 To C’s Capital Account 5,000c)A’s Capital Account Dr. 12,000B’s Capital Account Dr. 12,000C’s Capital Account Dr. 6,000 To Goodwill Account 30,000d)A’s Capital Account Dr. 3,000 To B’s Capital Account 2,000 To C’s Capital Account 1,000Correct answer is option 'A'. Can you explain this answer?
Question Description
A, B and C are partners sharing profits and loss in the ratio 3:2:1. They decide to change their profit sharing ratio to 2:2:1. To give effect to this new profit sharing ratio they decide to value the goodwill at Rs. 30,000. Pass the necessary journal entry if Goodwill not appearing in the old balance sheet and should not appear in the new balance sheet.a)B’s Capital Account Dr. 2,000C’s Capital Account Dr. 1,000 To A’s Capital Account 3,000b)Goodwill Account Dr. 30,000 To A’s Capital Account 15,000 To B’s Capital Account 10,000 To C’s Capital Account 5,000c)A’s Capital Account Dr. 12,000B’s Capital Account Dr. 12,000C’s Capital Account Dr. 6,000 To Goodwill Account 30,000d)A’s Capital Account Dr. 3,000 To B’s Capital Account 2,000 To C’s Capital Account 1,000Correct answer is option 'A'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about A, B and C are partners sharing profits and loss in the ratio 3:2:1. They decide to change their profit sharing ratio to 2:2:1. To give effect to this new profit sharing ratio they decide to value the goodwill at Rs. 30,000. Pass the necessary journal entry if Goodwill not appearing in the old balance sheet and should not appear in the new balance sheet.a)B’s Capital Account Dr. 2,000C’s Capital Account Dr. 1,000 To A’s Capital Account 3,000b)Goodwill Account Dr. 30,000 To A’s Capital Account 15,000 To B’s Capital Account 10,000 To C’s Capital Account 5,000c)A’s Capital Account Dr. 12,000B’s Capital Account Dr. 12,000C’s Capital Account Dr. 6,000 To Goodwill Account 30,000d)A’s Capital Account Dr. 3,000 To B’s Capital Account 2,000 To C’s Capital Account 1,000Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A, B and C are partners sharing profits and loss in the ratio 3:2:1. They decide to change their profit sharing ratio to 2:2:1. To give effect to this new profit sharing ratio they decide to value the goodwill at Rs. 30,000. Pass the necessary journal entry if Goodwill not appearing in the old balance sheet and should not appear in the new balance sheet.a)B’s Capital Account Dr. 2,000C’s Capital Account Dr. 1,000 To A’s Capital Account 3,000b)Goodwill Account Dr. 30,000 To A’s Capital Account 15,000 To B’s Capital Account 10,000 To C’s Capital Account 5,000c)A’s Capital Account Dr. 12,000B’s Capital Account Dr. 12,000C’s Capital Account Dr. 6,000 To Goodwill Account 30,000d)A’s Capital Account Dr. 3,000 To B’s Capital Account 2,000 To C’s Capital Account 1,000Correct answer is option 'A'. Can you explain this answer?.
A, B and C are partners sharing profits and loss in the ratio 3:2:1. They decide to change their profit sharing ratio to 2:2:1. To give effect to this new profit sharing ratio they decide to value the goodwill at Rs. 30,000. Pass the necessary journal entry if Goodwill not appearing in the old balance sheet and should not appear in the new balance sheet.a)B’s Capital Account Dr. 2,000C’s Capital Account Dr. 1,000 To A’s Capital Account 3,000b)Goodwill Account Dr. 30,000 To A’s Capital Account 15,000 To B’s Capital Account 10,000 To C’s Capital Account 5,000c)A’s Capital Account Dr. 12,000B’s Capital Account Dr. 12,000C’s Capital Account Dr. 6,000 To Goodwill Account 30,000d)A’s Capital Account Dr. 3,000 To B’s Capital Account 2,000 To C’s Capital Account 1,000Correct answer is option 'A'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about A, B and C are partners sharing profits and loss in the ratio 3:2:1. They decide to change their profit sharing ratio to 2:2:1. To give effect to this new profit sharing ratio they decide to value the goodwill at Rs. 30,000. Pass the necessary journal entry if Goodwill not appearing in the old balance sheet and should not appear in the new balance sheet.a)B’s Capital Account Dr. 2,000C’s Capital Account Dr. 1,000 To A’s Capital Account 3,000b)Goodwill Account Dr. 30,000 To A’s Capital Account 15,000 To B’s Capital Account 10,000 To C’s Capital Account 5,000c)A’s Capital Account Dr. 12,000B’s Capital Account Dr. 12,000C’s Capital Account Dr. 6,000 To Goodwill Account 30,000d)A’s Capital Account Dr. 3,000 To B’s Capital Account 2,000 To C’s Capital Account 1,000Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A, B and C are partners sharing profits and loss in the ratio 3:2:1. They decide to change their profit sharing ratio to 2:2:1. To give effect to this new profit sharing ratio they decide to value the goodwill at Rs. 30,000. Pass the necessary journal entry if Goodwill not appearing in the old balance sheet and should not appear in the new balance sheet.a)B’s Capital Account Dr. 2,000C’s Capital Account Dr. 1,000 To A’s Capital Account 3,000b)Goodwill Account Dr. 30,000 To A’s Capital Account 15,000 To B’s Capital Account 10,000 To C’s Capital Account 5,000c)A’s Capital Account Dr. 12,000B’s Capital Account Dr. 12,000C’s Capital Account Dr. 6,000 To Goodwill Account 30,000d)A’s Capital Account Dr. 3,000 To B’s Capital Account 2,000 To C’s Capital Account 1,000Correct answer is option 'A'. Can you explain this answer?.
Solutions for A, B and C are partners sharing profits and loss in the ratio 3:2:1. They decide to change their profit sharing ratio to 2:2:1. To give effect to this new profit sharing ratio they decide to value the goodwill at Rs. 30,000. Pass the necessary journal entry if Goodwill not appearing in the old balance sheet and should not appear in the new balance sheet.a)B’s Capital Account Dr. 2,000C’s Capital Account Dr. 1,000 To A’s Capital Account 3,000b)Goodwill Account Dr. 30,000 To A’s Capital Account 15,000 To B’s Capital Account 10,000 To C’s Capital Account 5,000c)A’s Capital Account Dr. 12,000B’s Capital Account Dr. 12,000C’s Capital Account Dr. 6,000 To Goodwill Account 30,000d)A’s Capital Account Dr. 3,000 To B’s Capital Account 2,000 To C’s Capital Account 1,000Correct answer is option 'A'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA Foundation.
Download more important topics, notes, lectures and mock test series for CA Foundation Exam by signing up for free.
Here you can find the meaning of A, B and C are partners sharing profits and loss in the ratio 3:2:1. They decide to change their profit sharing ratio to 2:2:1. To give effect to this new profit sharing ratio they decide to value the goodwill at Rs. 30,000. Pass the necessary journal entry if Goodwill not appearing in the old balance sheet and should not appear in the new balance sheet.a)B’s Capital Account Dr. 2,000C’s Capital Account Dr. 1,000 To A’s Capital Account 3,000b)Goodwill Account Dr. 30,000 To A’s Capital Account 15,000 To B’s Capital Account 10,000 To C’s Capital Account 5,000c)A’s Capital Account Dr. 12,000B’s Capital Account Dr. 12,000C’s Capital Account Dr. 6,000 To Goodwill Account 30,000d)A’s Capital Account Dr. 3,000 To B’s Capital Account 2,000 To C’s Capital Account 1,000Correct answer is option 'A'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
A, B and C are partners sharing profits and loss in the ratio 3:2:1. They decide to change their profit sharing ratio to 2:2:1. To give effect to this new profit sharing ratio they decide to value the goodwill at Rs. 30,000. Pass the necessary journal entry if Goodwill not appearing in the old balance sheet and should not appear in the new balance sheet.a)B’s Capital Account Dr. 2,000C’s Capital Account Dr. 1,000 To A’s Capital Account 3,000b)Goodwill Account Dr. 30,000 To A’s Capital Account 15,000 To B’s Capital Account 10,000 To C’s Capital Account 5,000c)A’s Capital Account Dr. 12,000B’s Capital Account Dr. 12,000C’s Capital Account Dr. 6,000 To Goodwill Account 30,000d)A’s Capital Account Dr. 3,000 To B’s Capital Account 2,000 To C’s Capital Account 1,000Correct answer is option 'A'. Can you explain this answer?, a detailed solution for A, B and C are partners sharing profits and loss in the ratio 3:2:1. They decide to change their profit sharing ratio to 2:2:1. To give effect to this new profit sharing ratio they decide to value the goodwill at Rs. 30,000. Pass the necessary journal entry if Goodwill not appearing in the old balance sheet and should not appear in the new balance sheet.a)B’s Capital Account Dr. 2,000C’s Capital Account Dr. 1,000 To A’s Capital Account 3,000b)Goodwill Account Dr. 30,000 To A’s Capital Account 15,000 To B’s Capital Account 10,000 To C’s Capital Account 5,000c)A’s Capital Account Dr. 12,000B’s Capital Account Dr. 12,000C’s Capital Account Dr. 6,000 To Goodwill Account 30,000d)A’s Capital Account Dr. 3,000 To B’s Capital Account 2,000 To C’s Capital Account 1,000Correct answer is option 'A'. Can you explain this answer? has been provided alongside types of A, B and C are partners sharing profits and loss in the ratio 3:2:1. They decide to change their profit sharing ratio to 2:2:1. To give effect to this new profit sharing ratio they decide to value the goodwill at Rs. 30,000. Pass the necessary journal entry if Goodwill not appearing in the old balance sheet and should not appear in the new balance sheet.a)B’s Capital Account Dr. 2,000C’s Capital Account Dr. 1,000 To A’s Capital Account 3,000b)Goodwill Account Dr. 30,000 To A’s Capital Account 15,000 To B’s Capital Account 10,000 To C’s Capital Account 5,000c)A’s Capital Account Dr. 12,000B’s Capital Account Dr. 12,000C’s Capital Account Dr. 6,000 To Goodwill Account 30,000d)A’s Capital Account Dr. 3,000 To B’s Capital Account 2,000 To C’s Capital Account 1,000Correct answer is option 'A'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice A, B and C are partners sharing profits and loss in the ratio 3:2:1. They decide to change their profit sharing ratio to 2:2:1. To give effect to this new profit sharing ratio they decide to value the goodwill at Rs. 30,000. Pass the necessary journal entry if Goodwill not appearing in the old balance sheet and should not appear in the new balance sheet.a)B’s Capital Account Dr. 2,000C’s Capital Account Dr. 1,000 To A’s Capital Account 3,000b)Goodwill Account Dr. 30,000 To A’s Capital Account 15,000 To B’s Capital Account 10,000 To C’s Capital Account 5,000c)A’s Capital Account Dr. 12,000B’s Capital Account Dr. 12,000C’s Capital Account Dr. 6,000 To Goodwill Account 30,000d)A’s Capital Account Dr. 3,000 To B’s Capital Account 2,000 To C’s Capital Account 1,000Correct answer is option 'A'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
|
|
Explore Courses for CA Foundation exam
|
|
Suggested Free Tests
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup