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Geeta and Sita are partners in a firm sharing-profits in the ratio of 3 : 2. They decide to share future profits equally. For this purpose the goodwill of the firm has been valued at Rs. 50,000. Record necessary adjustment entry for the same.
- a)Dr. Sita and Cr. Geeta by Rs. 4,500
- b)Dr. Geeta and Cr. Sita by Rs. 5,000
- c)Dr. Sita and Cr. Geeta by Rs. 4,000
- d)Dr. Sita and Cr. Geeta by Rs. 5,000
Correct answer is option 'D'. Can you explain this answer?
Most Upvoted Answer
Geeta and Sita are partners in a firm sharing-profits in the ratio of ...
Adjutment of goodwill amount at the time of change in profit sharing ratio:
Old Ratio = 3:2 and New Ratio 1:1
Geeta’s Sacrifice = 3/5 – 1/2 = 1/10
Sita’s Gain = 2/5 – 1/2 = 1/10
Share in goodwill = 50,000 × 1/10 = 5,000
Old Ratio = 3:2 and New Ratio 1:1
Geeta’s Sacrifice = 3/5 – 1/2 = 1/10
Sita’s Gain = 2/5 – 1/2 = 1/10
Share in goodwill = 50,000 × 1/10 = 5,000
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Geeta and Sita are partners in a firm sharing-profits in the ratio of ...
Adjustment entry for sharing goodwill in new ratio:
Step 1: Calculate the total value of goodwill
Total value of goodwill = Rs. 50,000
Step 2: Calculate the share of each partner in the existing ratio
Geeta's share = 3/5 x Rs. 50,000 = Rs. 30,000
Sita's share = 2/5 x Rs. 50,000 = Rs. 20,000
Step 3: Calculate the amount of adjustment
Geeta will have to give up Rs. 5,000 (Rs. 30,000 - Rs. 25,000) to share the future profits equally.
Sita will receive Rs. 5,000 (Rs. 25,000 - Rs. 20,000) to share the future profits equally.
Step 4: Record the adjustment entry
Dr. Sita's Capital Account Rs. 5,000
Cr. Geeta's Capital Account Rs. 5,000
The above entry will decrease Geeta's Capital Account by Rs. 5,000 and increase Sita's Capital Account by Rs. 5,000, resulting in equal sharing of future profits. Therefore, option D is the correct answer.
Step 1: Calculate the total value of goodwill
Total value of goodwill = Rs. 50,000
Step 2: Calculate the share of each partner in the existing ratio
Geeta's share = 3/5 x Rs. 50,000 = Rs. 30,000
Sita's share = 2/5 x Rs. 50,000 = Rs. 20,000
Step 3: Calculate the amount of adjustment
Geeta will have to give up Rs. 5,000 (Rs. 30,000 - Rs. 25,000) to share the future profits equally.
Sita will receive Rs. 5,000 (Rs. 25,000 - Rs. 20,000) to share the future profits equally.
Step 4: Record the adjustment entry
Dr. Sita's Capital Account Rs. 5,000
Cr. Geeta's Capital Account Rs. 5,000
The above entry will decrease Geeta's Capital Account by Rs. 5,000 and increase Sita's Capital Account by Rs. 5,000, resulting in equal sharing of future profits. Therefore, option D is the correct answer.
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Geeta and Sita are partners in a firm sharing-profits in the ratio of 3 : 2. They decide to share future profits equally. For this purpose the goodwill of the firm has been valued at Rs. 50,000. Record necessary adjustment entry for the same.a)Dr. Sita and Cr. Geeta by Rs. 4,500b)Dr. Geeta and Cr. Sita by Rs. 5,000c)Dr. Sita and Cr. Geeta by Rs. 4,000d)Dr. Sita and Cr. Geeta by Rs. 5,000Correct answer is option 'D'. 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 Geeta and Sita are partners in a firm sharing-profits in the ratio of 3 : 2. They decide to share future profits equally. For this purpose the goodwill of the firm has been valued at Rs. 50,000. Record necessary adjustment entry for the same.a)Dr. Sita and Cr. Geeta by Rs. 4,500b)Dr. Geeta and Cr. Sita by Rs. 5,000c)Dr. Sita and Cr. Geeta by Rs. 4,000d)Dr. Sita and Cr. Geeta by Rs. 5,000Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for Commerce 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Geeta and Sita are partners in a firm sharing-profits in the ratio of 3 : 2. They decide to share future profits equally. For this purpose the goodwill of the firm has been valued at Rs. 50,000. Record necessary adjustment entry for the same.a)Dr. Sita and Cr. Geeta by Rs. 4,500b)Dr. Geeta and Cr. Sita by Rs. 5,000c)Dr. Sita and Cr. Geeta by Rs. 4,000d)Dr. Sita and Cr. Geeta by Rs. 5,000Correct answer is option 'D'. Can you explain this answer?.
Geeta and Sita are partners in a firm sharing-profits in the ratio of 3 : 2. They decide to share future profits equally. For this purpose the goodwill of the firm has been valued at Rs. 50,000. Record necessary adjustment entry for the same.a)Dr. Sita and Cr. Geeta by Rs. 4,500b)Dr. Geeta and Cr. Sita by Rs. 5,000c)Dr. Sita and Cr. Geeta by Rs. 4,000d)Dr. Sita and Cr. Geeta by Rs. 5,000Correct answer is option 'D'. 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 Geeta and Sita are partners in a firm sharing-profits in the ratio of 3 : 2. They decide to share future profits equally. For this purpose the goodwill of the firm has been valued at Rs. 50,000. Record necessary adjustment entry for the same.a)Dr. Sita and Cr. Geeta by Rs. 4,500b)Dr. Geeta and Cr. Sita by Rs. 5,000c)Dr. Sita and Cr. Geeta by Rs. 4,000d)Dr. Sita and Cr. Geeta by Rs. 5,000Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for Commerce 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Geeta and Sita are partners in a firm sharing-profits in the ratio of 3 : 2. They decide to share future profits equally. For this purpose the goodwill of the firm has been valued at Rs. 50,000. Record necessary adjustment entry for the same.a)Dr. Sita and Cr. Geeta by Rs. 4,500b)Dr. Geeta and Cr. Sita by Rs. 5,000c)Dr. Sita and Cr. Geeta by Rs. 4,000d)Dr. Sita and Cr. Geeta by Rs. 5,000Correct answer is option 'D'. Can you explain this answer?.
Solutions for Geeta and Sita are partners in a firm sharing-profits in the ratio of 3 : 2. They decide to share future profits equally. For this purpose the goodwill of the firm has been valued at Rs. 50,000. Record necessary adjustment entry for the same.a)Dr. Sita and Cr. Geeta by Rs. 4,500b)Dr. Geeta and Cr. Sita by Rs. 5,000c)Dr. Sita and Cr. Geeta by Rs. 4,000d)Dr. Sita and Cr. Geeta by Rs. 5,000Correct answer is option 'D'. Can you explain this answer? in English & in Hindi are available as part of our courses for Commerce.
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Geeta and Sita are partners in a firm sharing-profits in the ratio of 3 : 2. They decide to share future profits equally. For this purpose the goodwill of the firm has been valued at Rs. 50,000. Record necessary adjustment entry for the same.a)Dr. Sita and Cr. Geeta by Rs. 4,500b)Dr. Geeta and Cr. Sita by Rs. 5,000c)Dr. Sita and Cr. Geeta by Rs. 4,000d)Dr. Sita and Cr. Geeta by Rs. 5,000Correct answer is option 'D'. Can you explain this answer?, a detailed solution for Geeta and Sita are partners in a firm sharing-profits in the ratio of 3 : 2. They decide to share future profits equally. For this purpose the goodwill of the firm has been valued at Rs. 50,000. Record necessary adjustment entry for the same.a)Dr. Sita and Cr. Geeta by Rs. 4,500b)Dr. Geeta and Cr. Sita by Rs. 5,000c)Dr. Sita and Cr. Geeta by Rs. 4,000d)Dr. Sita and Cr. Geeta by Rs. 5,000Correct answer is option 'D'. Can you explain this answer? has been provided alongside types of Geeta and Sita are partners in a firm sharing-profits in the ratio of 3 : 2. They decide to share future profits equally. For this purpose the goodwill of the firm has been valued at Rs. 50,000. Record necessary adjustment entry for the same.a)Dr. Sita and Cr. Geeta by Rs. 4,500b)Dr. Geeta and Cr. Sita by Rs. 5,000c)Dr. Sita and Cr. Geeta by Rs. 4,000d)Dr. Sita and Cr. Geeta by Rs. 5,000Correct answer is option 'D'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice Geeta and Sita are partners in a firm sharing-profits in the ratio of 3 : 2. They decide to share future profits equally. For this purpose the goodwill of the firm has been valued at Rs. 50,000. Record necessary adjustment entry for the same.a)Dr. Sita and Cr. Geeta by Rs. 4,500b)Dr. Geeta and Cr. Sita by Rs. 5,000c)Dr. Sita and Cr. Geeta by Rs. 4,000d)Dr. Sita and Cr. Geeta by Rs. 5,000Correct answer is option 'D'. Can you explain this answer? tests, examples and also practice Commerce tests.
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