CA Foundation Exam > CA Foundation Questions > A, B and C are partners sharing profits in th...
Start Learning for Free
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. Contribution of A and C to compensate B will be
- a)Rs. 20,000 and Rs. 10,000 respectively
- b)Rs. 8,000 and Rs. 4,000 respectively
- c)They will not contribute any thing
- d)Information is insufficient for any comment
Correct answer is option 'B'. Can you explain this answer?
| FREE This question is part of | Download PDF Attempt this Test |
Most Upvoted Answer
A, B and C are partners sharing profits in the ratio 2:2:1. On retirem...
Given Data:
Profit sharing ratio of A, B and C = 2:2:1
Goodwill value = Rs. 30,000
Calculation:
1. Calculation of B's share in the goodwill value:
B's share in the profit = 2/5
B's share in the goodwill value = (2/5) x Rs. 30,000 = Rs. 12,000
2. Calculation of the amount to be compensated to B:
B's share in the goodwill value = Rs. 12,000
So, A and C have to compensate B by Rs. 12,000
3. Calculation of the contribution of A and C:
Total profit sharing ratio of A and C = 2+1 = 3
A's share in the profit = (2/3) x 100 = 66.67%
C's share in the profit = (1/3) x 100 = 33.33%
Contribution of A = (66.67/100) x Rs. 12,000 = Rs. 8,000
Contribution of C = (33.33/100) x Rs. 12,000 = Rs. 4,000
Hence, the correct option is (b) Rs. 8,000 and Rs. 4,000 respectively.
Profit sharing ratio of A, B and C = 2:2:1
Goodwill value = Rs. 30,000
Calculation:
1. Calculation of B's share in the goodwill value:
B's share in the profit = 2/5
B's share in the goodwill value = (2/5) x Rs. 30,000 = Rs. 12,000
2. Calculation of the amount to be compensated to B:
B's share in the goodwill value = Rs. 12,000
So, A and C have to compensate B by Rs. 12,000
3. Calculation of the contribution of A and C:
Total profit sharing ratio of A and C = 2+1 = 3
A's share in the profit = (2/3) x 100 = 66.67%
C's share in the profit = (1/3) x 100 = 33.33%
Contribution of A = (66.67/100) x Rs. 12,000 = Rs. 8,000
Contribution of C = (33.33/100) x Rs. 12,000 = Rs. 4,000
Hence, the correct option is (b) Rs. 8,000 and Rs. 4,000 respectively.
Free Test
FREE
| Start Free Test |
Community Answer
A, B and C are partners sharing profits in the ratio 2:2:1. On retirem...
Total goodwill of the firm on b's retirement is 30 thousand. B share of goodwill is 30,000×2\5=12,000. A, C give B's share of goodwill in their gaining ratio 2:1. A= 12,000×2/3=8,000,C=12,000×1/3=4000.
Attention CA Foundation Students!
To make sure you are not studying endlessly, EduRev has designed CA Foundation study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in CA Foundation.
|
Explore Courses for CA Foundation exam
|
|
Similar CA Foundation Doubts
Top Courses for CA FoundationView all
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. Contribution of A and C to compensate B will bea)Rs. 20,000 and Rs. 10,000 respectivelyb)Rs. 8,000 and Rs. 4,000 respectivelyc)They will not contribute any thingd)Information is insufficient for any commentCorrect answer is option 'B'. Can you explain this answer?
Question Description
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. Contribution of A and C to compensate B will bea)Rs. 20,000 and Rs. 10,000 respectivelyb)Rs. 8,000 and Rs. 4,000 respectivelyc)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. Contribution of A and C to compensate B will bea)Rs. 20,000 and Rs. 10,000 respectivelyb)Rs. 8,000 and Rs. 4,000 respectivelyc)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. Contribution of A and C to compensate B will bea)Rs. 20,000 and Rs. 10,000 respectivelyb)Rs. 8,000 and Rs. 4,000 respectivelyc)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. Contribution of A and C to compensate B will bea)Rs. 20,000 and Rs. 10,000 respectivelyb)Rs. 8,000 and Rs. 4,000 respectivelyc)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. Contribution of A and C to compensate B will bea)Rs. 20,000 and Rs. 10,000 respectivelyb)Rs. 8,000 and Rs. 4,000 respectivelyc)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. Contribution of A and C to compensate B will bea)Rs. 20,000 and Rs. 10,000 respectivelyb)Rs. 8,000 and Rs. 4,000 respectivelyc)They will not contribute any thingd)Information is insufficient for any commentCorrect answer is option 'B'. Can you explain this answer?.
Solutions 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. Contribution of A and C to compensate B will bea)Rs. 20,000 and Rs. 10,000 respectivelyb)Rs. 8,000 and Rs. 4,000 respectivelyc)They will not contribute any thingd)Information is insufficient for any commentCorrect 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 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. Contribution of A and C to compensate B will bea)Rs. 20,000 and Rs. 10,000 respectivelyb)Rs. 8,000 and Rs. 4,000 respectivelyc)They will not contribute any thingd)Information is insufficient for any commentCorrect answer is option 'B'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
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. Contribution of A and C to compensate B will bea)Rs. 20,000 and Rs. 10,000 respectivelyb)Rs. 8,000 and Rs. 4,000 respectivelyc)They will not contribute any thingd)Information is insufficient for any commentCorrect answer is option 'B'. Can you explain this answer?, a detailed solution 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. Contribution of A and C to compensate B will bea)Rs. 20,000 and Rs. 10,000 respectivelyb)Rs. 8,000 and Rs. 4,000 respectivelyc)They will not contribute any thingd)Information is insufficient for any commentCorrect answer is option 'B'. Can you explain this answer? has been provided alongside types of 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. Contribution of A and C to compensate B will bea)Rs. 20,000 and Rs. 10,000 respectivelyb)Rs. 8,000 and Rs. 4,000 respectivelyc)They will not contribute any thingd)Information is insufficient for any commentCorrect answer is option 'B'. Can you explain this answer? theory, EduRev gives you an
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. Contribution of A and C to compensate B will bea)Rs. 20,000 and Rs. 10,000 respectivelyb)Rs. 8,000 and Rs. 4,000 respectivelyc)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.
|
|
Explore Courses for CA Foundation exam
|
|
Suggested Free Tests
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