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A, B and C are partners with profits sharing ratio 4:3:2. B retires and Goodwill Rs. 10,800 was shown in books of account. If A & C shares profits of B in 5:3, then find the value of goodwill shared between A and C.
- a)Rs. 1,850 and Rs. 1,950
- b)Rs. 1,650 and Rs. 1,750
- c)Rs. 2,000 and Rs. 1,600
- d)Rs. 1,950 and Rs.1,650
Correct answer is option 'D'. Can you explain this answer?
Verified Answer
A, B and C are partners with profits sharing ratio 4:3:2. B retires an...
Calculation of gaining ratio
Old ratio (A, B and C) = 4 : 3 : 2
B retires from the firm
New artio (A and C ) = 5 : 3
Gaining ratio = New ratio - Old ratio
A's new share = (5/8) - (4/9) = (45 - 32) /72 = 13/72
C's new share = (3/8) - (2/9) = (27 - 16) / 36 = 11/72
gaining ratio = 13 : 11
2. Adjustment of goodwill
C's share of goodwill = (10800 * 3) / 9 = 3600
This share of goodwill is to be debited to remaining partners' capital account in their gaining ratio (i.e., 13 : 11 )
Journal entry for the above will be:
A's capital A/c Dr. 1950
C's capital A/c Dr. 1650
To B's capital A/c 3600
Most Upvoted Answer
A, B and C are partners with profits sharing ratio 4:3:2. B retires an...
Yes right answer is D)
Solution :- 1st you have to calculate Gaining Ratio
New share less old share
Therefore , Gaining Ratio = 13 : 11
then B's share of goodwill = 10800 × 3/9 = 3600
Hence, Journal entry for this
A's Capital A/c Dr. 1950
c's capital A/c Dr. 1650
To B's capital A/c 3600
Solution :- 1st you have to calculate Gaining Ratio
New share less old share
Therefore , Gaining Ratio = 13 : 11
then B's share of goodwill = 10800 × 3/9 = 3600
Hence, Journal entry for this
A's Capital A/c Dr. 1950
c's capital A/c Dr. 1650
To B's capital A/c 3600
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A, B and C are partners with profits sharing ratio 4:3:2. B retires an...
And C decide to share future profits equally, the new profit sharing ratio between A and C would be 1:1.
To calculate the amount to be paid to B as his share of goodwill, we need to calculate the average profits of the last few years.
Let's assume that the average profits of the last few years are x.
The total profits shared by A, B, and C in the previous ratio is 4x + 3x + 2x = 9x.
The new profit sharing ratio between A and C is 1:1, so the total profits shared by A and C in the new ratio is 1x + 1x = 2x.
The difference in profits between the previous and new ratios is 9x - 2x = 7x.
The amount of goodwill is given as Rs. 10,800.
So, 7x = Rs. 10,800.
To calculate the value of x, we need to divide Rs. 10,800 by 7.
x = Rs. 10,800 / 7
x = Rs. 1542.86
Now, to calculate B's share of goodwill, we multiply B's profit sharing ratio (3) by the value of x.
B's share of goodwill = 3 * Rs. 1542.86 = Rs. 4628.57
Therefore, B's share of goodwill is Rs. 4628.57.
To calculate the amount to be paid to B as his share of goodwill, we need to calculate the average profits of the last few years.
Let's assume that the average profits of the last few years are x.
The total profits shared by A, B, and C in the previous ratio is 4x + 3x + 2x = 9x.
The new profit sharing ratio between A and C is 1:1, so the total profits shared by A and C in the new ratio is 1x + 1x = 2x.
The difference in profits between the previous and new ratios is 9x - 2x = 7x.
The amount of goodwill is given as Rs. 10,800.
So, 7x = Rs. 10,800.
To calculate the value of x, we need to divide Rs. 10,800 by 7.
x = Rs. 10,800 / 7
x = Rs. 1542.86
Now, to calculate B's share of goodwill, we multiply B's profit sharing ratio (3) by the value of x.
B's share of goodwill = 3 * Rs. 1542.86 = Rs. 4628.57
Therefore, B's share of goodwill is Rs. 4628.57.
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A, B and C are partners with profits sharing ratio 4:3:2. B retires and Goodwill Rs. 10,800 was shown in books of account. If A & C shares profits of B in 5:3, then find the value of goodwill shared between A and C.a)Rs. 1,850 and Rs. 1,950b)Rs. 1,650 and Rs. 1,750c)Rs. 2,000 and Rs. 1,600d)Rs. 1,950 and Rs.1,650Correct answer is option 'D'. Can you explain this answer?
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A, B and C are partners with profits sharing ratio 4:3:2. B retires and Goodwill Rs. 10,800 was shown in books of account. If A & C shares profits of B in 5:3, then find the value of goodwill shared between A and C.a)Rs. 1,850 and Rs. 1,950b)Rs. 1,650 and Rs. 1,750c)Rs. 2,000 and Rs. 1,600d)Rs. 1,950 and Rs.1,650Correct answer is option 'D'. 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 A, B and C are partners with profits sharing ratio 4:3:2. B retires and Goodwill Rs. 10,800 was shown in books of account. If A & C shares profits of B in 5:3, then find the value of goodwill shared between A and C.a)Rs. 1,850 and Rs. 1,950b)Rs. 1,650 and Rs. 1,750c)Rs. 2,000 and Rs. 1,600d)Rs. 1,950 and Rs.1,650Correct answer is option 'D'. 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 A, B and C are partners with profits sharing ratio 4:3:2. B retires and Goodwill Rs. 10,800 was shown in books of account. If A & C shares profits of B in 5:3, then find the value of goodwill shared between A and C.a)Rs. 1,850 and Rs. 1,950b)Rs. 1,650 and Rs. 1,750c)Rs. 2,000 and Rs. 1,600d)Rs. 1,950 and Rs.1,650Correct answer is option 'D'. Can you explain this answer?.
A, B and C are partners with profits sharing ratio 4:3:2. B retires and Goodwill Rs. 10,800 was shown in books of account. If A & C shares profits of B in 5:3, then find the value of goodwill shared between A and C.a)Rs. 1,850 and Rs. 1,950b)Rs. 1,650 and Rs. 1,750c)Rs. 2,000 and Rs. 1,600d)Rs. 1,950 and Rs.1,650Correct answer is option 'D'. 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 A, B and C are partners with profits sharing ratio 4:3:2. B retires and Goodwill Rs. 10,800 was shown in books of account. If A & C shares profits of B in 5:3, then find the value of goodwill shared between A and C.a)Rs. 1,850 and Rs. 1,950b)Rs. 1,650 and Rs. 1,750c)Rs. 2,000 and Rs. 1,600d)Rs. 1,950 and Rs.1,650Correct answer is option 'D'. 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 A, B and C are partners with profits sharing ratio 4:3:2. B retires and Goodwill Rs. 10,800 was shown in books of account. If A & C shares profits of B in 5:3, then find the value of goodwill shared between A and C.a)Rs. 1,850 and Rs. 1,950b)Rs. 1,650 and Rs. 1,750c)Rs. 2,000 and Rs. 1,600d)Rs. 1,950 and Rs.1,650Correct answer is option 'D'. Can you explain this answer?.
Solutions for A, B and C are partners with profits sharing ratio 4:3:2. B retires and Goodwill Rs. 10,800 was shown in books of account. If A & C shares profits of B in 5:3, then find the value of goodwill shared between A and C.a)Rs. 1,850 and Rs. 1,950b)Rs. 1,650 and Rs. 1,750c)Rs. 2,000 and Rs. 1,600d)Rs. 1,950 and Rs.1,650Correct answer is option 'D'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA Foundation.
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A, B and C are partners with profits sharing ratio 4:3:2. B retires and Goodwill Rs. 10,800 was shown in books of account. If A & C shares profits of B in 5:3, then find the value of goodwill shared between A and C.a)Rs. 1,850 and Rs. 1,950b)Rs. 1,650 and Rs. 1,750c)Rs. 2,000 and Rs. 1,600d)Rs. 1,950 and Rs.1,650Correct answer is option 'D'. Can you explain this answer?, a detailed solution for A, B and C are partners with profits sharing ratio 4:3:2. B retires and Goodwill Rs. 10,800 was shown in books of account. If A & C shares profits of B in 5:3, then find the value of goodwill shared between A and C.a)Rs. 1,850 and Rs. 1,950b)Rs. 1,650 and Rs. 1,750c)Rs. 2,000 and Rs. 1,600d)Rs. 1,950 and Rs.1,650Correct answer is option 'D'. Can you explain this answer? has been provided alongside types of A, B and C are partners with profits sharing ratio 4:3:2. B retires and Goodwill Rs. 10,800 was shown in books of account. If A & C shares profits of B in 5:3, then find the value of goodwill shared between A and C.a)Rs. 1,850 and Rs. 1,950b)Rs. 1,650 and Rs. 1,750c)Rs. 2,000 and Rs. 1,600d)Rs. 1,950 and Rs.1,650Correct answer is option 'D'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice A, B and C are partners with profits sharing ratio 4:3:2. B retires and Goodwill Rs. 10,800 was shown in books of account. If A & C shares profits of B in 5:3, then find the value of goodwill shared between A and C.a)Rs. 1,850 and Rs. 1,950b)Rs. 1,650 and Rs. 1,750c)Rs. 2,000 and Rs. 1,600d)Rs. 1,950 and Rs.1,650Correct answer is option 'D'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
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