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A, B and C are partners sharing profits in the ratio 2:2:1. On retirement of B, goodwill was valued as Rs. 30,000. Find the contribution of A and C to compensate B.
- a)Rs. 20,000 and Rs. 10,000
- b)Rs. 8,000 and Rs. 4,000
- c)They will not contribute any thing
- d)Information is insufficient for any comment
Correct answer is option 'B'. Can you explain this answer?
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Most Upvoted Answer
A, B and C are partners sharing profits in the ratio 2:2:1. On retirem...
To find the contribution of partners A and C to compensate B, we need to first determine the value of B's share in the partnership.
Given:
Profit-sharing ratio of A, B, and C = 2:2:1
Goodwill value = Rs. 30,000
Step 1: Calculate B's share in the partnership
Since the profit-sharing ratio of A, B, and C is 2:2:1, we can calculate B's share as follows:
B's share = (2 / (2 + 2 + 1)) * Goodwill value
B's share = (2 / 5) * Rs. 30,000
B's share = Rs. 12,000
Step 2: Determine the contribution of A and C
Since B is retiring, A and C need to compensate B for his share in the partnership. As per the profit-sharing ratio, A and C will share the remaining profits in a 2:1 ratio.
Let's assume the remaining profits after B's retirement are X.
A's share = (2 / (2 + 1)) * X
C's share = (1 / (2 + 1)) * X
Since A and C need to compensate B for Rs. 12,000, we can set up the following equation:
A's share + C's share = Rs. 12,000
(2 / 3) * X + (1 / 3) * X = Rs. 12,000
(3 / 3) * X = Rs. 12,000
X = Rs. 12,000
Step 3: Calculate the contribution of A and C
Now that we know the value of X, we can calculate the individual contributions of A and C.
A's contribution = (2 / 3) * X = (2 / 3) * Rs. 12,000 = Rs. 8,000
C's contribution = (1 / 3) * X = (1 / 3) * Rs. 12,000 = Rs. 4,000
Therefore, the contribution of A and C to compensate B is Rs. 8,000 and Rs. 4,000, respectively. Hence, the correct answer is option B.
Given:
Profit-sharing ratio of A, B, and C = 2:2:1
Goodwill value = Rs. 30,000
Step 1: Calculate B's share in the partnership
Since the profit-sharing ratio of A, B, and C is 2:2:1, we can calculate B's share as follows:
B's share = (2 / (2 + 2 + 1)) * Goodwill value
B's share = (2 / 5) * Rs. 30,000
B's share = Rs. 12,000
Step 2: Determine the contribution of A and C
Since B is retiring, A and C need to compensate B for his share in the partnership. As per the profit-sharing ratio, A and C will share the remaining profits in a 2:1 ratio.
Let's assume the remaining profits after B's retirement are X.
A's share = (2 / (2 + 1)) * X
C's share = (1 / (2 + 1)) * X
Since A and C need to compensate B for Rs. 12,000, we can set up the following equation:
A's share + C's share = Rs. 12,000
(2 / 3) * X + (1 / 3) * X = Rs. 12,000
(3 / 3) * X = Rs. 12,000
X = Rs. 12,000
Step 3: Calculate the contribution of A and C
Now that we know the value of X, we can calculate the individual contributions of A and C.
A's contribution = (2 / 3) * X = (2 / 3) * Rs. 12,000 = Rs. 8,000
C's contribution = (1 / 3) * X = (1 / 3) * Rs. 12,000 = Rs. 4,000
Therefore, the contribution of A and C to compensate B is Rs. 8,000 and Rs. 4,000, respectively. Hence, the correct answer is option B.
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Community Answer
A, B and C are partners sharing profits in the ratio 2:2:1. On retirem...
Gaining partner compensate the retiring partner by paying goodwill in gaining ratio..
In this question gaining ratio is 4:6
and B's share of goodwill is 12000
so A will compensate 12000*4/6 I.e.8000
B will compensate 12000*2/6 I.e.4000
In this question gaining ratio is 4:6
and B's share of goodwill is 12000
so A will compensate 12000*4/6 I.e.8000
B will compensate 12000*2/6 I.e.4000
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A, B and C are partners sharing profits in the ratio 2:2:1. On retirement of B, goodwill was valued as Rs. 30,000. Find the contribution of A and C to compensate B.a)Rs. 20,000 and Rs. 10,000b)Rs. 8,000 and Rs. 4,000c)They will not contribute any thingd)Information is insufficient for any commentCorrect answer is option 'B'. Can you explain this answer?
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A, B and C are partners sharing profits in the ratio 2:2:1. On retirement of B, goodwill was valued as Rs. 30,000. Find the contribution of A and C to compensate B.a)Rs. 20,000 and Rs. 10,000b)Rs. 8,000 and Rs. 4,000c)They will not contribute any thingd)Information is insufficient for any commentCorrect answer is option 'B'. 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 in the ratio 2:2:1. On retirement of B, goodwill was valued as Rs. 30,000. Find the contribution of A and C to compensate B.a)Rs. 20,000 and Rs. 10,000b)Rs. 8,000 and Rs. 4,000c)They will not contribute any thingd)Information is insufficient for any commentCorrect answer is option 'B'. 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 in the ratio 2:2:1. On retirement of B, goodwill was valued as Rs. 30,000. Find the contribution of A and C to compensate B.a)Rs. 20,000 and Rs. 10,000b)Rs. 8,000 and Rs. 4,000c)They will not contribute any thingd)Information is insufficient for any commentCorrect answer is option 'B'. Can you explain this answer?.
A, B and C are partners sharing profits in the ratio 2:2:1. On retirement of B, goodwill was valued as Rs. 30,000. Find the contribution of A and C to compensate B.a)Rs. 20,000 and Rs. 10,000b)Rs. 8,000 and Rs. 4,000c)They will not contribute any thingd)Information is insufficient for any commentCorrect answer is option 'B'. 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 in the ratio 2:2:1. On retirement of B, goodwill was valued as Rs. 30,000. Find the contribution of A and C to compensate B.a)Rs. 20,000 and Rs. 10,000b)Rs. 8,000 and Rs. 4,000c)They will not contribute any thingd)Information is insufficient for any commentCorrect answer is option 'B'. 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 in the ratio 2:2:1. On retirement of B, goodwill was valued as Rs. 30,000. Find the contribution of A and C to compensate B.a)Rs. 20,000 and Rs. 10,000b)Rs. 8,000 and Rs. 4,000c)They will not contribute any thingd)Information is insufficient for any commentCorrect answer is option 'B'. Can you explain this answer?.
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ample number of questions to practice A, B and C are partners sharing profits in the ratio 2:2:1. On retirement of B, goodwill was valued as Rs. 30,000. Find the contribution of A and C to compensate B.a)Rs. 20,000 and Rs. 10,000b)Rs. 8,000 and Rs. 4,000c)They will not contribute any thingd)Information is insufficient for any commentCorrect answer is option 'B'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
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