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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...
1. 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
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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?.
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