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A, B and C were partners in a firm sharing profits and losses in the ratio of 2:2:1. The capital balances of A, B and C are Rs. 50,000, Rs. 50,000 and Rs. 25,000 respectively. B declared to retire from the firm on 1st April, 2008. Balance in reserve on the date was Rs. 15,000. If goodwill of the firm was valued as Rs. 30,000 and profit on revaluation was Rs. 7,050, then what amount will be transferred to the loan account of B.
- a)Rs. 70,820
- b)Rs. 50,820
- c)Rs. 25,820
- d)Rs. 20,820
Correct answer is option 'A'. Can you explain this answer?
Most Upvoted Answer
A, B and C were partners in a firm sharing profits and losses in the r...
Given information:
- A, B, and C are partners in a firm sharing profits and losses in the ratio of 2:2:1.
- The capital balances of A, B, and C are Rs. 50,000, Rs. 50,000, and Rs. 25,000 respectively.
- B declared retirement from the firm on 1st April 2008.
- Balance in reserve on the date was Rs. 15,000.
- Goodwill of the firm was valued at Rs. 30,000.
- Profit on revaluation was Rs. 7,050.
Calculations:
1. Calculate the total capital of the firm:
Total capital = Capital of A + Capital of B + Capital of C
= Rs. 50,000 + Rs. 50,000 + Rs. 25,000
= Rs. 1,25,000
2. Calculate the new profit sharing ratio after B's retirement:
A's share = 2/5 x 3/4 = 3/10
C's share = 1/5 x 3/4 = 3/20
3. Calculate the new capital of the firm after B's retirement:
New capital = Total capital - B's capital
= Rs. 1,25,000 - Rs. 50,000
= Rs. 75,000
4. Calculate C's new capital:
C's new capital = C's old capital + C's share in goodwill
= Rs. 25,000 + (3/20 x Rs. 30,000)
= Rs. 25,000 + Rs. 4,500
= Rs. 29,500
5. Calculate the gain on retirement of B:
Gain on retirement = New capital - Old capital
= Rs. 75,000 - Rs. 50,000
= Rs. 25,000
6. Calculate the share of goodwill:
Share of goodwill = Gain on retirement - Profit on revaluation
= Rs. 25,000 - Rs. 7,050
= Rs. 17,950
7. Calculate the amount to be transferred to B's loan account:
Amount to be transferred = B's capital - B's share of goodwill - Share of reserve
= Rs. 50,000 - Rs. 17,950 - Rs. 15,000
= Rs. 17,050
Conclusion:
The amount to be transferred to B's loan account is Rs. 17,050.
- A, B, and C are partners in a firm sharing profits and losses in the ratio of 2:2:1.
- The capital balances of A, B, and C are Rs. 50,000, Rs. 50,000, and Rs. 25,000 respectively.
- B declared retirement from the firm on 1st April 2008.
- Balance in reserve on the date was Rs. 15,000.
- Goodwill of the firm was valued at Rs. 30,000.
- Profit on revaluation was Rs. 7,050.
Calculations:
1. Calculate the total capital of the firm:
Total capital = Capital of A + Capital of B + Capital of C
= Rs. 50,000 + Rs. 50,000 + Rs. 25,000
= Rs. 1,25,000
2. Calculate the new profit sharing ratio after B's retirement:
A's share = 2/5 x 3/4 = 3/10
C's share = 1/5 x 3/4 = 3/20
3. Calculate the new capital of the firm after B's retirement:
New capital = Total capital - B's capital
= Rs. 1,25,000 - Rs. 50,000
= Rs. 75,000
4. Calculate C's new capital:
C's new capital = C's old capital + C's share in goodwill
= Rs. 25,000 + (3/20 x Rs. 30,000)
= Rs. 25,000 + Rs. 4,500
= Rs. 29,500
5. Calculate the gain on retirement of B:
Gain on retirement = New capital - Old capital
= Rs. 75,000 - Rs. 50,000
= Rs. 25,000
6. Calculate the share of goodwill:
Share of goodwill = Gain on retirement - Profit on revaluation
= Rs. 25,000 - Rs. 7,050
= Rs. 17,950
7. Calculate the amount to be transferred to B's loan account:
Amount to be transferred = B's capital - B's share of goodwill - Share of reserve
= Rs. 50,000 - Rs. 17,950 - Rs. 15,000
= Rs. 17,050
Conclusion:
The amount to be transferred to B's loan account is Rs. 17,050.
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A, B and C were partners in a firm sharing profits and losses in the ratio of 2:2:1. The capital balances of A, B and C are Rs. 50,000, Rs. 50,000 and Rs. 25,000 respectively. B declared to retire from the firm on 1stApril, 2008. Balance in reserve on the date was Rs. 15,000. If goodwill of the firm was valued as Rs. 30,000 and profit on revaluation was Rs. 7,050, then what amount will be transferred to the loan account of B.a)Rs. 70,820b)Rs. 50,820c)Rs. 25,820d)Rs. 20,820Correct answer is option 'A'. Can you explain this answer?
Question Description
A, B and C were partners in a firm sharing profits and losses in the ratio of 2:2:1. The capital balances of A, B and C are Rs. 50,000, Rs. 50,000 and Rs. 25,000 respectively. B declared to retire from the firm on 1stApril, 2008. Balance in reserve on the date was Rs. 15,000. If goodwill of the firm was valued as Rs. 30,000 and profit on revaluation was Rs. 7,050, then what amount will be transferred to the loan account of B.a)Rs. 70,820b)Rs. 50,820c)Rs. 25,820d)Rs. 20,820Correct 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 A, B and C were partners in a firm sharing profits and losses in the ratio of 2:2:1. The capital balances of A, B and C are Rs. 50,000, Rs. 50,000 and Rs. 25,000 respectively. B declared to retire from the firm on 1stApril, 2008. Balance in reserve on the date was Rs. 15,000. If goodwill of the firm was valued as Rs. 30,000 and profit on revaluation was Rs. 7,050, then what amount will be transferred to the loan account of B.a)Rs. 70,820b)Rs. 50,820c)Rs. 25,820d)Rs. 20,820Correct 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 A, B and C were partners in a firm sharing profits and losses in the ratio of 2:2:1. The capital balances of A, B and C are Rs. 50,000, Rs. 50,000 and Rs. 25,000 respectively. B declared to retire from the firm on 1stApril, 2008. Balance in reserve on the date was Rs. 15,000. If goodwill of the firm was valued as Rs. 30,000 and profit on revaluation was Rs. 7,050, then what amount will be transferred to the loan account of B.a)Rs. 70,820b)Rs. 50,820c)Rs. 25,820d)Rs. 20,820Correct answer is option 'A'. Can you explain this answer?.
A, B and C were partners in a firm sharing profits and losses in the ratio of 2:2:1. The capital balances of A, B and C are Rs. 50,000, Rs. 50,000 and Rs. 25,000 respectively. B declared to retire from the firm on 1stApril, 2008. Balance in reserve on the date was Rs. 15,000. If goodwill of the firm was valued as Rs. 30,000 and profit on revaluation was Rs. 7,050, then what amount will be transferred to the loan account of B.a)Rs. 70,820b)Rs. 50,820c)Rs. 25,820d)Rs. 20,820Correct 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 A, B and C were partners in a firm sharing profits and losses in the ratio of 2:2:1. The capital balances of A, B and C are Rs. 50,000, Rs. 50,000 and Rs. 25,000 respectively. B declared to retire from the firm on 1stApril, 2008. Balance in reserve on the date was Rs. 15,000. If goodwill of the firm was valued as Rs. 30,000 and profit on revaluation was Rs. 7,050, then what amount will be transferred to the loan account of B.a)Rs. 70,820b)Rs. 50,820c)Rs. 25,820d)Rs. 20,820Correct 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 A, B and C were partners in a firm sharing profits and losses in the ratio of 2:2:1. The capital balances of A, B and C are Rs. 50,000, Rs. 50,000 and Rs. 25,000 respectively. B declared to retire from the firm on 1stApril, 2008. Balance in reserve on the date was Rs. 15,000. If goodwill of the firm was valued as Rs. 30,000 and profit on revaluation was Rs. 7,050, then what amount will be transferred to the loan account of B.a)Rs. 70,820b)Rs. 50,820c)Rs. 25,820d)Rs. 20,820Correct answer is option 'A'. Can you explain this answer?.
Solutions for A, B and C were partners in a firm sharing profits and losses in the ratio of 2:2:1. The capital balances of A, B and C are Rs. 50,000, Rs. 50,000 and Rs. 25,000 respectively. B declared to retire from the firm on 1stApril, 2008. Balance in reserve on the date was Rs. 15,000. If goodwill of the firm was valued as Rs. 30,000 and profit on revaluation was Rs. 7,050, then what amount will be transferred to the loan account of B.a)Rs. 70,820b)Rs. 50,820c)Rs. 25,820d)Rs. 20,820Correct 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 A, B and C were partners in a firm sharing profits and losses in the ratio of 2:2:1. The capital balances of A, B and C are Rs. 50,000, Rs. 50,000 and Rs. 25,000 respectively. B declared to retire from the firm on 1stApril, 2008. Balance in reserve on the date was Rs. 15,000. If goodwill of the firm was valued as Rs. 30,000 and profit on revaluation was Rs. 7,050, then what amount will be transferred to the loan account of B.a)Rs. 70,820b)Rs. 50,820c)Rs. 25,820d)Rs. 20,820Correct 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 were partners in a firm sharing profits and losses in the ratio of 2:2:1. The capital balances of A, B and C are Rs. 50,000, Rs. 50,000 and Rs. 25,000 respectively. B declared to retire from the firm on 1stApril, 2008. Balance in reserve on the date was Rs. 15,000. If goodwill of the firm was valued as Rs. 30,000 and profit on revaluation was Rs. 7,050, then what amount will be transferred to the loan account of B.a)Rs. 70,820b)Rs. 50,820c)Rs. 25,820d)Rs. 20,820Correct answer is option 'A'. Can you explain this answer?, a detailed solution for A, B and C were partners in a firm sharing profits and losses in the ratio of 2:2:1. The capital balances of A, B and C are Rs. 50,000, Rs. 50,000 and Rs. 25,000 respectively. B declared to retire from the firm on 1stApril, 2008. Balance in reserve on the date was Rs. 15,000. If goodwill of the firm was valued as Rs. 30,000 and profit on revaluation was Rs. 7,050, then what amount will be transferred to the loan account of B.a)Rs. 70,820b)Rs. 50,820c)Rs. 25,820d)Rs. 20,820Correct answer is option 'A'. Can you explain this answer? has been provided alongside types of A, B and C were partners in a firm sharing profits and losses in the ratio of 2:2:1. The capital balances of A, B and C are Rs. 50,000, Rs. 50,000 and Rs. 25,000 respectively. B declared to retire from the firm on 1stApril, 2008. Balance in reserve on the date was Rs. 15,000. If goodwill of the firm was valued as Rs. 30,000 and profit on revaluation was Rs. 7,050, then what amount will be transferred to the loan account of B.a)Rs. 70,820b)Rs. 50,820c)Rs. 25,820d)Rs. 20,820Correct answer is option 'A'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice A, B and C were partners in a firm sharing profits and losses in the ratio of 2:2:1. The capital balances of A, B and C are Rs. 50,000, Rs. 50,000 and Rs. 25,000 respectively. B declared to retire from the firm on 1stApril, 2008. Balance in reserve on the date was Rs. 15,000. If goodwill of the firm was valued as Rs. 30,000 and profit on revaluation was Rs. 7,050, then what amount will be transferred to the loan account of B.a)Rs. 70,820b)Rs. 50,820c)Rs. 25,820d)Rs. 20,820Correct answer is option 'A'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
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