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A, B and C are partners sharing profits in the ratio of 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)No contribution
- d)Rs. 15,000 and Rs. 15,000
Correct answer is option 'B'. Can you explain this answer?
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A, B and C are partners sharing profits in the ratio of 2:2:1. On reti...
Correct option is B Rs.8,000 and Rs.4,000.
On retirement of B, total goodwill of the firm is Rs. 30000
B's share of goodwill = Rs. 30000 * (2/5) = Rs. 12000
Contributions by A and C to compensate B will be in their gaining ratio i.e.,2 : 1
A's contribution = Rs. 12000 * (2/3) = Rs. 8000
B's contribution = Rs. 12000 * (1/3) = Rs. 4000
On retirement of B, total goodwill of the firm is Rs. 30000
B's share of goodwill = Rs. 30000 * (2/5) = Rs. 12000
Contributions by A and C to compensate B will be in their gaining ratio i.e.,2 : 1
A's contribution = Rs. 12000 * (2/3) = Rs. 8000
B's contribution = Rs. 12000 * (1/3) = Rs. 4000
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A, B and C are partners sharing profits in the ratio of 2:2:1. On reti...
To find the contribution of A and C to compensate B, we need to calculate the value of B's share of goodwill.
Given:
Ratio of profits: A:B:C = 2:2:1
Goodwill value = Rs. 30,000
Step 1: Calculate the total profit by adding the ratio values.
Total ratio = 2 + 2 + 1 = 5
Step 2: Divide the goodwill value by the total ratio to find the value of one unit of the ratio.
Value of one unit = Goodwill value / Total ratio = 30,000 / 5 = Rs. 6,000
Step 3: Multiply the value of one unit by the ratio values to find the respective shares of A, B, and C.
A's share = Value of one unit * A's ratio = 6,000 * 2 = Rs. 12,000
B's share = Value of one unit * B's ratio = 6,000 * 2 = Rs. 12,000
C's share = Value of one unit * C's ratio = 6,000 * 1 = Rs. 6,000
Step 4: Since B is retiring, A and C need to compensate B for his share of the goodwill.
A's contribution to compensate B = B's share - A's share = 12,000 - 12,000 = Rs. 0
C's contribution to compensate B = B's share - C's share = 12,000 - 6,000 = Rs. 6,000
Therefore, the contribution of A and C to compensate B is Rs. 0 and Rs. 6,000 respectively.
Hence, the correct answer is option 'c) No contribution'.
Given:
Ratio of profits: A:B:C = 2:2:1
Goodwill value = Rs. 30,000
Step 1: Calculate the total profit by adding the ratio values.
Total ratio = 2 + 2 + 1 = 5
Step 2: Divide the goodwill value by the total ratio to find the value of one unit of the ratio.
Value of one unit = Goodwill value / Total ratio = 30,000 / 5 = Rs. 6,000
Step 3: Multiply the value of one unit by the ratio values to find the respective shares of A, B, and C.
A's share = Value of one unit * A's ratio = 6,000 * 2 = Rs. 12,000
B's share = Value of one unit * B's ratio = 6,000 * 2 = Rs. 12,000
C's share = Value of one unit * C's ratio = 6,000 * 1 = Rs. 6,000
Step 4: Since B is retiring, A and C need to compensate B for his share of the goodwill.
A's contribution to compensate B = B's share - A's share = 12,000 - 12,000 = Rs. 0
C's contribution to compensate B = B's share - C's share = 12,000 - 6,000 = Rs. 6,000
Therefore, the contribution of A and C to compensate B is Rs. 0 and Rs. 6,000 respectively.
Hence, the correct answer is option 'c) No contribution'.
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A, B and C are partners sharing profits in the ratio of 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)No contributiond)Rs. 15,000 and Rs. 15,000Correct answer is option 'B'. Can you explain this answer?
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A, B and C are partners sharing profits in the ratio of 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)No contributiond)Rs. 15,000 and Rs. 15,000Correct 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 of 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)No contributiond)Rs. 15,000 and Rs. 15,000Correct 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 of 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)No contributiond)Rs. 15,000 and Rs. 15,000Correct answer is option 'B'. Can you explain this answer?.
A, B and C are partners sharing profits in the ratio of 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)No contributiond)Rs. 15,000 and Rs. 15,000Correct 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 of 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)No contributiond)Rs. 15,000 and Rs. 15,000Correct 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 of 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)No contributiond)Rs. 15,000 and Rs. 15,000Correct 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 of 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)No contributiond)Rs. 15,000 and Rs. 15,000Correct answer is option 'B'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
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