CA Foundation Exam > CA Foundation Questions > X, Y, Z were partners sharing profits in rati...
Start Learning for Free
X, Y, Z were partners sharing profits in ratio 5:3:2. Goodwill does not appear in books, but it is agreed to be worth Rs. 1,00,000. X retires from the firm and Y and Z decide to share future profits equally. X’s share of goodwill will be debited to Y’s and Z’s capital A/cs in ratio:
- a)1/2:1/2
- b)2:3
- c)3:2
- d)None
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
X, Y, Z were partners sharing profits in ratio 5:3:2. Goodwill does no...
To calculate the amount to be paid to X for his share of goodwill, we first need to determine the total profit of the firm at the time of X's retirement.
The ratio of profit sharing between X, Y, and Z is 5:3:2. Let's assume the total profit is represented by the variable 'P'.
The amount of profit allocated to X is 5/10 * P = P/2.
The amount of profit allocated to Y is 3/10 * P = 3P/10.
The amount of profit allocated to Z is 2/10 * P = P/5.
When X retires, the new profit sharing ratio between Y and Z is 1:1.
Let's assume the new equal share is 'Q'. So, Y and Z will each receive Q/2.
Since X's share of profit is P/2, we can equate it to Y and Z's new equal share:
P/2 = Q/2 + Q/2
P/2 = Q
To calculate the value of Q, we need to consider the total profit before X's retirement (P) and the value of the agreed goodwill (Rs. 1,00,000).
The total profit before X's retirement (P) is the sum of the individual profit shares:
P = P/2 + 3P/10 + P/5
To solve this equation, we multiply every term by 10 to eliminate the fractions:
10P = 5P + 6P + 2P
10P = 13P
13P - 10P = 0
3P = 0
This implies that the total profit before X's retirement is zero. However, this is not possible since there is an agreed goodwill of Rs. 1,00,000.
Therefore, there seems to be an error or missing information in the given problem statement. Please double-check the details and provide any missing information so that we can provide an accurate solution.
The ratio of profit sharing between X, Y, and Z is 5:3:2. Let's assume the total profit is represented by the variable 'P'.
The amount of profit allocated to X is 5/10 * P = P/2.
The amount of profit allocated to Y is 3/10 * P = 3P/10.
The amount of profit allocated to Z is 2/10 * P = P/5.
When X retires, the new profit sharing ratio between Y and Z is 1:1.
Let's assume the new equal share is 'Q'. So, Y and Z will each receive Q/2.
Since X's share of profit is P/2, we can equate it to Y and Z's new equal share:
P/2 = Q/2 + Q/2
P/2 = Q
To calculate the value of Q, we need to consider the total profit before X's retirement (P) and the value of the agreed goodwill (Rs. 1,00,000).
The total profit before X's retirement (P) is the sum of the individual profit shares:
P = P/2 + 3P/10 + P/5
To solve this equation, we multiply every term by 10 to eliminate the fractions:
10P = 5P + 6P + 2P
10P = 13P
13P - 10P = 0
3P = 0
This implies that the total profit before X's retirement is zero. However, this is not possible since there is an agreed goodwill of Rs. 1,00,000.
Therefore, there seems to be an error or missing information in the given problem statement. Please double-check the details and provide any missing information so that we can provide an accurate solution.
Free Test
FREE
| Start Free Test |
Community Answer
X, Y, Z were partners sharing profits in ratio 5:3:2. Goodwill does no...
Old Ratio - X : Y : Z
5 : 3 : 2
If X retries then and new ratio of Y and Z are equal
New Ratio - Y : Z
1: 1
Gaining Ratio of Y will be --
New Ratio - Old Ratio
= 1 / 2 - 3/10
= 4 / 10
= 2 / 5
Gaining Ratio of Z will be --
New Ratio - Old Ratio
= 1/2 - 2 /10
= 6 /10
= 3 / 5
Means their gaining ratio Y : Z
2 /5 : 3/5
2 : 5
5 : 3 : 2
If X retries then and new ratio of Y and Z are equal
New Ratio - Y : Z
1: 1
Gaining Ratio of Y will be --
New Ratio - Old Ratio
= 1 / 2 - 3/10
= 4 / 10
= 2 / 5
Gaining Ratio of Z will be --
New Ratio - Old Ratio
= 1/2 - 2 /10
= 6 /10
= 3 / 5
Means their gaining ratio Y : Z
2 /5 : 3/5
2 : 5
|
Explore Courses for CA Foundation exam
|
|
Similar CA Foundation Doubts
Top Courses for CA FoundationView all
X, Y, Z were partners sharing profits in ratio 5:3:2. Goodwill does not appear in books, but it is agreed to be worth Rs. 1,00,000. X retires from the firm and Y and Z decide to share future profits equally. X’s share of goodwill will be debited to Y’s and Z’s capital A/cs in ratio:a)1/2:1/2b)2:3c)3:2d)NoneCorrect answer is option 'B'. Can you explain this answer?
Question Description
X, Y, Z were partners sharing profits in ratio 5:3:2. Goodwill does not appear in books, but it is agreed to be worth Rs. 1,00,000. X retires from the firm and Y and Z decide to share future profits equally. X’s share of goodwill will be debited to Y’s and Z’s capital A/cs in ratio:a)1/2:1/2b)2:3c)3:2d)NoneCorrect answer is option 'B'. 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 X, Y, Z were partners sharing profits in ratio 5:3:2. Goodwill does not appear in books, but it is agreed to be worth Rs. 1,00,000. X retires from the firm and Y and Z decide to share future profits equally. X’s share of goodwill will be debited to Y’s and Z’s capital A/cs in ratio:a)1/2:1/2b)2:3c)3:2d)NoneCorrect answer is option 'B'. 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 X, Y, Z were partners sharing profits in ratio 5:3:2. Goodwill does not appear in books, but it is agreed to be worth Rs. 1,00,000. X retires from the firm and Y and Z decide to share future profits equally. X’s share of goodwill will be debited to Y’s and Z’s capital A/cs in ratio:a)1/2:1/2b)2:3c)3:2d)NoneCorrect answer is option 'B'. Can you explain this answer?.
X, Y, Z were partners sharing profits in ratio 5:3:2. Goodwill does not appear in books, but it is agreed to be worth Rs. 1,00,000. X retires from the firm and Y and Z decide to share future profits equally. X’s share of goodwill will be debited to Y’s and Z’s capital A/cs in ratio:a)1/2:1/2b)2:3c)3:2d)NoneCorrect answer is option 'B'. 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 X, Y, Z were partners sharing profits in ratio 5:3:2. Goodwill does not appear in books, but it is agreed to be worth Rs. 1,00,000. X retires from the firm and Y and Z decide to share future profits equally. X’s share of goodwill will be debited to Y’s and Z’s capital A/cs in ratio:a)1/2:1/2b)2:3c)3:2d)NoneCorrect answer is option 'B'. 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 X, Y, Z were partners sharing profits in ratio 5:3:2. Goodwill does not appear in books, but it is agreed to be worth Rs. 1,00,000. X retires from the firm and Y and Z decide to share future profits equally. X’s share of goodwill will be debited to Y’s and Z’s capital A/cs in ratio:a)1/2:1/2b)2:3c)3:2d)NoneCorrect answer is option 'B'. Can you explain this answer?.
Solutions for X, Y, Z were partners sharing profits in ratio 5:3:2. Goodwill does not appear in books, but it is agreed to be worth Rs. 1,00,000. X retires from the firm and Y and Z decide to share future profits equally. X’s share of goodwill will be debited to Y’s and Z’s capital A/cs in ratio:a)1/2:1/2b)2:3c)3:2d)NoneCorrect answer is option 'B'. 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 X, Y, Z were partners sharing profits in ratio 5:3:2. Goodwill does not appear in books, but it is agreed to be worth Rs. 1,00,000. X retires from the firm and Y and Z decide to share future profits equally. X’s share of goodwill will be debited to Y’s and Z’s capital A/cs in ratio:a)1/2:1/2b)2:3c)3:2d)NoneCorrect answer is option 'B'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
X, Y, Z were partners sharing profits in ratio 5:3:2. Goodwill does not appear in books, but it is agreed to be worth Rs. 1,00,000. X retires from the firm and Y and Z decide to share future profits equally. X’s share of goodwill will be debited to Y’s and Z’s capital A/cs in ratio:a)1/2:1/2b)2:3c)3:2d)NoneCorrect answer is option 'B'. Can you explain this answer?, a detailed solution for X, Y, Z were partners sharing profits in ratio 5:3:2. Goodwill does not appear in books, but it is agreed to be worth Rs. 1,00,000. X retires from the firm and Y and Z decide to share future profits equally. X’s share of goodwill will be debited to Y’s and Z’s capital A/cs in ratio:a)1/2:1/2b)2:3c)3:2d)NoneCorrect answer is option 'B'. Can you explain this answer? has been provided alongside types of X, Y, Z were partners sharing profits in ratio 5:3:2. Goodwill does not appear in books, but it is agreed to be worth Rs. 1,00,000. X retires from the firm and Y and Z decide to share future profits equally. X’s share of goodwill will be debited to Y’s and Z’s capital A/cs in ratio:a)1/2:1/2b)2:3c)3:2d)NoneCorrect answer is option 'B'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice X, Y, Z were partners sharing profits in ratio 5:3:2. Goodwill does not appear in books, but it is agreed to be worth Rs. 1,00,000. X retires from the firm and Y and Z decide to share future profits equally. X’s share of goodwill will be debited to Y’s and Z’s capital A/cs in ratio:a)1/2:1/2b)2:3c)3:2d)NoneCorrect answer is option 'B'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
|
|
Explore Courses for CA Foundation exam
|
|
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup