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The capital of A and B sharing profits and losses equally are Rs. 90,000 and Rs. 30,000 respectively. They value the goodwill of the firm at Rs. 84,000, which was not recorded in the books. If goodwill is be raised now, by what amount each partner’s capital account will be debited:
- a)Rs. 21,000 and Rs. 63,000.
- b)Rs. 42,000 and Rs. 42,000.
- c)Rs. 63,000 and Rs. 21,000.
- d)None of the above
Correct answer is option 'D'. Can you explain this answer?
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The capital of A and B sharing profits and losses equally are Rs. 90,0...
One can only raise purchased goodwill not internally generated goodwill
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The capital of A and B sharing profits and losses equally are Rs. 90,0...
Given:
Capital of A = Rs. 90,000
Capital of B = Rs. 30,000
Goodwill = Rs. 84,000
To find: The amount by which each partner's capital account will be debited if goodwill is to be raised now.
Solution:
When goodwill is to be raised, it means that its value should be recorded in the books of accounts. As the goodwill is not recorded in the books, it needs to be added to the capital accounts of the partners.
The new capital of A and B after adding goodwill will be:
Capital of A = Rs. 90,000 + Rs. 42,000 (half of goodwill) = Rs. 1,32,000
Capital of B = Rs. 30,000 + Rs. 42,000 (half of goodwill) = Rs. 72,000
The amount by which each partner's capital account will be debited will be the difference between the old capital and the new capital.
Debit to A's capital account = Rs. 1,32,000 - Rs. 90,000 = Rs. 42,000
Debit to B's capital account = Rs. 72,000 - Rs. 30,000 = Rs. 42,000
Therefore, the correct option is 'D'. None of the above, as the amount by which each partner's capital account will be debited is Rs. 42,000.
Capital of A = Rs. 90,000
Capital of B = Rs. 30,000
Goodwill = Rs. 84,000
To find: The amount by which each partner's capital account will be debited if goodwill is to be raised now.
Solution:
When goodwill is to be raised, it means that its value should be recorded in the books of accounts. As the goodwill is not recorded in the books, it needs to be added to the capital accounts of the partners.
The new capital of A and B after adding goodwill will be:
Capital of A = Rs. 90,000 + Rs. 42,000 (half of goodwill) = Rs. 1,32,000
Capital of B = Rs. 30,000 + Rs. 42,000 (half of goodwill) = Rs. 72,000
The amount by which each partner's capital account will be debited will be the difference between the old capital and the new capital.
Debit to A's capital account = Rs. 1,32,000 - Rs. 90,000 = Rs. 42,000
Debit to B's capital account = Rs. 72,000 - Rs. 30,000 = Rs. 42,000
Therefore, the correct option is 'D'. None of the above, as the amount by which each partner's capital account will be debited is Rs. 42,000.
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The capital of A and B sharing profits and losses equally are Rs. 90,000 and Rs. 30,000 respectively. They value the goodwill of the firm at Rs. 84,000, which was not recorded in the books. If goodwill is be raised now, by what amount each partner’s capital account will be debited:a)Rs. 21,000 and Rs. 63,000.b)Rs. 42,000 and Rs. 42,000.c)Rs. 63,000 and Rs. 21,000.d)None of the aboveCorrect answer is option 'D'. Can you explain this answer?
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The capital of A and B sharing profits and losses equally are Rs. 90,000 and Rs. 30,000 respectively. They value the goodwill of the firm at Rs. 84,000, which was not recorded in the books. If goodwill is be raised now, by what amount each partner’s capital account will be debited:a)Rs. 21,000 and Rs. 63,000.b)Rs. 42,000 and Rs. 42,000.c)Rs. 63,000 and Rs. 21,000.d)None of the aboveCorrect 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 The capital of A and B sharing profits and losses equally are Rs. 90,000 and Rs. 30,000 respectively. They value the goodwill of the firm at Rs. 84,000, which was not recorded in the books. If goodwill is be raised now, by what amount each partner’s capital account will be debited:a)Rs. 21,000 and Rs. 63,000.b)Rs. 42,000 and Rs. 42,000.c)Rs. 63,000 and Rs. 21,000.d)None of the aboveCorrect 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 The capital of A and B sharing profits and losses equally are Rs. 90,000 and Rs. 30,000 respectively. They value the goodwill of the firm at Rs. 84,000, which was not recorded in the books. If goodwill is be raised now, by what amount each partner’s capital account will be debited:a)Rs. 21,000 and Rs. 63,000.b)Rs. 42,000 and Rs. 42,000.c)Rs. 63,000 and Rs. 21,000.d)None of the aboveCorrect answer is option 'D'. Can you explain this answer?.
The capital of A and B sharing profits and losses equally are Rs. 90,000 and Rs. 30,000 respectively. They value the goodwill of the firm at Rs. 84,000, which was not recorded in the books. If goodwill is be raised now, by what amount each partner’s capital account will be debited:a)Rs. 21,000 and Rs. 63,000.b)Rs. 42,000 and Rs. 42,000.c)Rs. 63,000 and Rs. 21,000.d)None of the aboveCorrect 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 The capital of A and B sharing profits and losses equally are Rs. 90,000 and Rs. 30,000 respectively. They value the goodwill of the firm at Rs. 84,000, which was not recorded in the books. If goodwill is be raised now, by what amount each partner’s capital account will be debited:a)Rs. 21,000 and Rs. 63,000.b)Rs. 42,000 and Rs. 42,000.c)Rs. 63,000 and Rs. 21,000.d)None of the aboveCorrect 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 The capital of A and B sharing profits and losses equally are Rs. 90,000 and Rs. 30,000 respectively. They value the goodwill of the firm at Rs. 84,000, which was not recorded in the books. If goodwill is be raised now, by what amount each partner’s capital account will be debited:a)Rs. 21,000 and Rs. 63,000.b)Rs. 42,000 and Rs. 42,000.c)Rs. 63,000 and Rs. 21,000.d)None of the aboveCorrect answer is option 'D'. Can you explain this answer?.
Solutions for The capital of A and B sharing profits and losses equally are Rs. 90,000 and Rs. 30,000 respectively. They value the goodwill of the firm at Rs. 84,000, which was not recorded in the books. If goodwill is be raised now, by what amount each partner’s capital account will be debited:a)Rs. 21,000 and Rs. 63,000.b)Rs. 42,000 and Rs. 42,000.c)Rs. 63,000 and Rs. 21,000.d)None of the aboveCorrect answer is option 'D'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA Foundation.
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The capital of A and B sharing profits and losses equally are Rs. 90,000 and Rs. 30,000 respectively. They value the goodwill of the firm at Rs. 84,000, which was not recorded in the books. If goodwill is be raised now, by what amount each partner’s capital account will be debited:a)Rs. 21,000 and Rs. 63,000.b)Rs. 42,000 and Rs. 42,000.c)Rs. 63,000 and Rs. 21,000.d)None of the aboveCorrect answer is option 'D'. Can you explain this answer?, a detailed solution for The capital of A and B sharing profits and losses equally are Rs. 90,000 and Rs. 30,000 respectively. They value the goodwill of the firm at Rs. 84,000, which was not recorded in the books. If goodwill is be raised now, by what amount each partner’s capital account will be debited:a)Rs. 21,000 and Rs. 63,000.b)Rs. 42,000 and Rs. 42,000.c)Rs. 63,000 and Rs. 21,000.d)None of the aboveCorrect answer is option 'D'. Can you explain this answer? has been provided alongside types of The capital of A and B sharing profits and losses equally are Rs. 90,000 and Rs. 30,000 respectively. They value the goodwill of the firm at Rs. 84,000, which was not recorded in the books. If goodwill is be raised now, by what amount each partner’s capital account will be debited:a)Rs. 21,000 and Rs. 63,000.b)Rs. 42,000 and Rs. 42,000.c)Rs. 63,000 and Rs. 21,000.d)None of the aboveCorrect answer is option 'D'. Can you explain this answer? theory, EduRev gives you an
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