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The capital of B and D are Rs. 90,000 and Rs. 30,000 respectively with the profit sharing ratio 3:1. The new ratio, admissible after 01.04.2006 is 5:3. The goodwill is valued Rs. 80,000 as on that date. Amount payable by a gaining partner to a scarifying partner is:
- a)B will pay to D Rs. 10,000.
- b)D will pay to B Rs. 10,000.
- c)B will pay to D Rs. 80,000.
- d)will pay to B Rs. 80,000.
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
The capital of B and D are Rs. 90,000 and Rs. 30,000 respectively with...
Calculation of amount payable by a gaining partner to a sacrificing partner:
Given information:
- Initial capital of B = Rs. 90,000
- Initial capital of D = Rs. 30,000
- Profit sharing ratio initially = 3:1
- New profit sharing ratio = 5:3
- Goodwill value as on 01.04.2006 = Rs. 80,000
Step 1: Calculation of Gaining Partner's Capital:
- B's initial capital = Rs. 90,000
- D's initial capital = Rs. 30,000
- Total initial capital = Rs. 120,000
- New profit sharing ratio for B = 5/(5+3) = 5/8
- New profit sharing ratio for D = 3/(5+3) = 3/8
- B's share of goodwill = Rs. 80,000 * 5/8 = Rs. 50,000
- D's share of goodwill = Rs. 80,000 * 3/8 = Rs. 30,000
- B's total capital after considering goodwill = Rs. 90,000 + Rs. 50,000 = Rs. 140,000
- D's total capital after considering goodwill = Rs. 30,000 + Rs. 30,000 = Rs. 60,000
Step 2: Calculation of Sacrificing Partner's Capital:
- Sacrificing partner = D
- D's total capital after considering goodwill = Rs. 60,000
- D's share of goodwill = Rs. 30,000
- Amount payable by gaining partner (B) to sacrificing partner (D) = D's total capital after considering goodwill - D's share of goodwill
- Amount payable by B to D = Rs. 60,000 - Rs. 30,000 = Rs. 30,000
Therefore, option B is correct: D will pay to B Rs. 30,000.
Given information:
- Initial capital of B = Rs. 90,000
- Initial capital of D = Rs. 30,000
- Profit sharing ratio initially = 3:1
- New profit sharing ratio = 5:3
- Goodwill value as on 01.04.2006 = Rs. 80,000
Step 1: Calculation of Gaining Partner's Capital:
- B's initial capital = Rs. 90,000
- D's initial capital = Rs. 30,000
- Total initial capital = Rs. 120,000
- New profit sharing ratio for B = 5/(5+3) = 5/8
- New profit sharing ratio for D = 3/(5+3) = 3/8
- B's share of goodwill = Rs. 80,000 * 5/8 = Rs. 50,000
- D's share of goodwill = Rs. 80,000 * 3/8 = Rs. 30,000
- B's total capital after considering goodwill = Rs. 90,000 + Rs. 50,000 = Rs. 140,000
- D's total capital after considering goodwill = Rs. 30,000 + Rs. 30,000 = Rs. 60,000
Step 2: Calculation of Sacrificing Partner's Capital:
- Sacrificing partner = D
- D's total capital after considering goodwill = Rs. 60,000
- D's share of goodwill = Rs. 30,000
- Amount payable by gaining partner (B) to sacrificing partner (D) = D's total capital after considering goodwill - D's share of goodwill
- Amount payable by B to D = Rs. 60,000 - Rs. 30,000 = Rs. 30,000
Therefore, option B is correct: D will pay to B Rs. 30,000.
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The capital of B and D are Rs. 90,000 and Rs. 30,000 respectively with...
Given information:
- Capital of B = Rs. 90,000
- Capital of D = Rs. 30,000
- Profit sharing ratio = 3:1
- New ratio = 5:3
- Goodwill value = Rs. 80,000
To find: Amount payable by a gaining partner to a sacrificing partner.
Calculation:
1. The total capital of the firm = Capital of B + Capital of D = Rs. 90,000 + Rs. 30,000 = Rs. 1,20,000.
2. The old profit sharing ratio is 3:1, which means B will get 3/4th of the profit and D will get 1/4th of the profit.
3. The new ratio is 5:3, which means B will get 5/8th of the profit and D will get 3/8th of the profit.
4. The change in ratio is from 3:1 to 5:3, which means B is gaining and D is sacrificing.
5. The gaining partner (B) will compensate the sacrificing partner (D) for the change in ratio.
6. The amount of compensation is calculated as follows:
- Goodwill = Rs. 80,000
- Total capital = Rs. 1,20,000
- Sacrificing partner's share in the total capital = (Capital of D / Total capital) x Goodwill
= (Rs. 30,000 / Rs. 1,20,000) x Rs. 80,000
= Rs. 20,000
7. Therefore, the amount payable by the gaining partner (B) to the sacrificing partner (D) is Rs. 20,000.
Answer: B. D will pay to B Rs. 20,000.
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The capital of B and D are Rs. 90,000 and Rs. 30,000 respectively with the profit sharing ratio 3:1. The new ratio, admissible after 01.04.2006 is 5:3. The goodwill is valued Rs. 80,000 as on that date. Amount payable by a gaining partner to a scarifying partner is:a)B will pay to D Rs. 10,000.b)D will pay to B Rs. 10,000.c)B will pay to D Rs. 80,000.d)will pay to B Rs. 80,000.Correct answer is option 'B'. Can you explain this answer?
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The capital of B and D are Rs. 90,000 and Rs. 30,000 respectively with the profit sharing ratio 3:1. The new ratio, admissible after 01.04.2006 is 5:3. The goodwill is valued Rs. 80,000 as on that date. Amount payable by a gaining partner to a scarifying partner is:a)B will pay to D Rs. 10,000.b)D will pay to B Rs. 10,000.c)B will pay to D Rs. 80,000.d)will pay to B Rs. 80,000.Correct answer is option 'B'. Can you explain this answer? for Commerce 2025 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about The capital of B and D are Rs. 90,000 and Rs. 30,000 respectively with the profit sharing ratio 3:1. The new ratio, admissible after 01.04.2006 is 5:3. The goodwill is valued Rs. 80,000 as on that date. Amount payable by a gaining partner to a scarifying partner is:a)B will pay to D Rs. 10,000.b)D will pay to B Rs. 10,000.c)B will pay to D Rs. 80,000.d)will pay to B Rs. 80,000.Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for Commerce 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The capital of B and D are Rs. 90,000 and Rs. 30,000 respectively with the profit sharing ratio 3:1. The new ratio, admissible after 01.04.2006 is 5:3. The goodwill is valued Rs. 80,000 as on that date. Amount payable by a gaining partner to a scarifying partner is:a)B will pay to D Rs. 10,000.b)D will pay to B Rs. 10,000.c)B will pay to D Rs. 80,000.d)will pay to B Rs. 80,000.Correct answer is option 'B'. Can you explain this answer?.
The capital of B and D are Rs. 90,000 and Rs. 30,000 respectively with the profit sharing ratio 3:1. The new ratio, admissible after 01.04.2006 is 5:3. The goodwill is valued Rs. 80,000 as on that date. Amount payable by a gaining partner to a scarifying partner is:a)B will pay to D Rs. 10,000.b)D will pay to B Rs. 10,000.c)B will pay to D Rs. 80,000.d)will pay to B Rs. 80,000.Correct answer is option 'B'. Can you explain this answer? for Commerce 2025 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about The capital of B and D are Rs. 90,000 and Rs. 30,000 respectively with the profit sharing ratio 3:1. The new ratio, admissible after 01.04.2006 is 5:3. The goodwill is valued Rs. 80,000 as on that date. Amount payable by a gaining partner to a scarifying partner is:a)B will pay to D Rs. 10,000.b)D will pay to B Rs. 10,000.c)B will pay to D Rs. 80,000.d)will pay to B Rs. 80,000.Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for Commerce 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The capital of B and D are Rs. 90,000 and Rs. 30,000 respectively with the profit sharing ratio 3:1. The new ratio, admissible after 01.04.2006 is 5:3. The goodwill is valued Rs. 80,000 as on that date. Amount payable by a gaining partner to a scarifying partner is:a)B will pay to D Rs. 10,000.b)D will pay to B Rs. 10,000.c)B will pay to D Rs. 80,000.d)will pay to B Rs. 80,000.Correct answer is option 'B'. Can you explain this answer?.
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ample number of questions to practice The capital of B and D are Rs. 90,000 and Rs. 30,000 respectively with the profit sharing ratio 3:1. The new ratio, admissible after 01.04.2006 is 5:3. The goodwill is valued Rs. 80,000 as on that date. Amount payable by a gaining partner to a scarifying partner is:a)B will pay to D Rs. 10,000.b)D will pay to B Rs. 10,000.c)B will pay to D Rs. 80,000.d)will pay to B Rs. 80,000.Correct answer is option 'B'. Can you explain this answer? tests, examples and also practice Commerce tests.
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