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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?
Most Upvoted Answer
The capital of A and B sharing profits and losses equally are Rs. 90,0...
Will be credited or debited?
Since A and B share profits and losses equally, they have a 1:1 ratio in their capital contributions. Therefore, the total capital of the firm is Rs. 1,20,000 (Rs. 90,000 + Rs. 30,000).
If the goodwill of the firm is valued at Rs. 84,000, it means that the total value of the firm is Rs. 2,04,000 (Rs. 1,20,000 + Rs. 84,000).
To raise the goodwill in the books, each partner's capital account will be credited or debited based on their share in the firm. Since they have an equal share, each partner's capital account will be credited or debited by half of the goodwill value.
Therefore, each partner's capital account will be credited by Rs. 42,000 (half of Rs. 84,000). The new capital balance of A and B will be Rs. 1,32,000 each (Rs. 90,000 + Rs. 42,000 and Rs. 30,000 + Rs. 42,000 respectively).
Since A and B share profits and losses equally, they have a 1:1 ratio in their capital contributions. Therefore, the total capital of the firm is Rs. 1,20,000 (Rs. 90,000 + Rs. 30,000).
If the goodwill of the firm is valued at Rs. 84,000, it means that the total value of the firm is Rs. 2,04,000 (Rs. 1,20,000 + Rs. 84,000).
To raise the goodwill in the books, each partner's capital account will be credited or debited based on their share in the firm. Since they have an equal share, each partner's capital account will be credited or debited by half of the goodwill value.
Therefore, each partner's capital account will be credited by Rs. 42,000 (half of Rs. 84,000). The new capital balance of A and B will be Rs. 1,32,000 each (Rs. 90,000 + Rs. 42,000 and Rs. 30,000 + Rs. 42,000 respectively).
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The capital of A and B sharing profits and losses equally are Rs. 90,0...
Because it is already mentioned that they share profits and losses equally,, so that there accounts will also debited by equal amounts.... 42000 each
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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. 63,000b)Rs. 42,000 and Rs. 42,000c)Rs. 63,000 and Rs. 21,000d)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. 63,000b)Rs. 42,000 and Rs. 42,000c)Rs. 63,000 and Rs. 21,000d)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. 63,000b)Rs. 42,000 and Rs. 42,000c)Rs. 63,000 and Rs. 21,000d)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. 63,000b)Rs. 42,000 and Rs. 42,000c)Rs. 63,000 and Rs. 21,000d)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. 63,000b)Rs. 42,000 and Rs. 42,000c)Rs. 63,000 and Rs. 21,000d)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. 63,000b)Rs. 42,000 and Rs. 42,000c)Rs. 63,000 and Rs. 21,000d)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. 63,000b)Rs. 42,000 and Rs. 42,000c)Rs. 63,000 and Rs. 21,000d)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. 63,000b)Rs. 42,000 and Rs. 42,000c)Rs. 63,000 and Rs. 21,000d)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. 63,000b)Rs. 42,000 and Rs. 42,000c)Rs. 63,000 and Rs. 21,000d)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. 63,000b)Rs. 42,000 and Rs. 42,000c)Rs. 63,000 and Rs. 21,000d)None of the aboveCorrect answer is option 'D'. Can you explain this answer? theory, EduRev gives you an
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