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Goodwill of the firm is 30,000. Gain of A is 1/6 and Sacrifice of B is 1/6. How will be adjust goodwill?
- a)Debit B and Credit A with Rs.5,000
- b)Debit A and Credit B with Rs.5,000
- c)Debit A and B with 15,000 each and Credit Goodwill with Rs.30,000
- d)Debit Goodwill with Rs.10,000 and Credit A and B with Rs.5,000 each
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
Goodwill of the firm is 30,000. Gain of A is 1/6 and Sacrifice of B is...
In this case adjustment will be made as follows:
1.Goodwill of the firm Rs.30,000 (given)
2.A’s Gain share in goodwill 30,000 × 1/6 = 5,000
3.B’s Sacrifice share of goodwill 30,000 × 1/6 = 5,000
Now, Debit the gainer and credit the sacrificing partner.
1.Goodwill of the firm Rs.30,000 (given)
2.A’s Gain share in goodwill 30,000 × 1/6 = 5,000
3.B’s Sacrifice share of goodwill 30,000 × 1/6 = 5,000
Now, Debit the gainer and credit the sacrificing partner.
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Community Answer
Goodwill of the firm is 30,000. Gain of A is 1/6 and Sacrifice of B is...
Adjustment of Goodwill in the given scenario:
To understand the adjustment of goodwill in this scenario, let's break down the given information:
- Goodwill of the firm is 30,000.
- Gain of A is 1/6.
- Sacrifice of B is 1/6.
Now, let's analyze the options one by one:
a) Debit B and Credit A with Rs.5,000:
- This option suggests that B should be debited and A should be credited with Rs.5,000.
- However, this adjustment does not take into account the gain of A and the sacrifice of B.
- Therefore, it is not the correct adjustment.
b) Debit A and Credit B with Rs.5,000:
- This option suggests that A should be debited and B should be credited with Rs.5,000.
- This adjustment considers the gain of A and the sacrifice of B.
- Since both the gain and sacrifice are equal (1/6), the adjustment of Rs.5,000 is appropriate.
- Therefore, this is the correct adjustment.
c) Debit A and B with 15,000 each and Credit Goodwill with Rs.30,000:
- This option suggests that both A and B should be debited with 15,000 each and Goodwill should be credited with Rs.30,000.
- However, this adjustment does not consider the gain of A and the sacrifice of B.
- Therefore, it is not the correct adjustment.
d) Debit Goodwill with Rs.10,000 and Credit A and B with Rs.5,000 each:
- This option suggests that Goodwill should be debited with Rs.10,000 and both A and B should be credited with Rs.5,000 each.
- However, this adjustment does not consider the gain of A and the sacrifice of B.
- Therefore, it is not the correct adjustment.
Conclusion:
The correct adjustment of goodwill in this scenario is to debit A and credit B with Rs.5,000. This adjustment takes into account the gain of A and the sacrifice of B, making it the appropriate adjustment.
To understand the adjustment of goodwill in this scenario, let's break down the given information:
- Goodwill of the firm is 30,000.
- Gain of A is 1/6.
- Sacrifice of B is 1/6.
Now, let's analyze the options one by one:
a) Debit B and Credit A with Rs.5,000:
- This option suggests that B should be debited and A should be credited with Rs.5,000.
- However, this adjustment does not take into account the gain of A and the sacrifice of B.
- Therefore, it is not the correct adjustment.
b) Debit A and Credit B with Rs.5,000:
- This option suggests that A should be debited and B should be credited with Rs.5,000.
- This adjustment considers the gain of A and the sacrifice of B.
- Since both the gain and sacrifice are equal (1/6), the adjustment of Rs.5,000 is appropriate.
- Therefore, this is the correct adjustment.
c) Debit A and B with 15,000 each and Credit Goodwill with Rs.30,000:
- This option suggests that both A and B should be debited with 15,000 each and Goodwill should be credited with Rs.30,000.
- However, this adjustment does not consider the gain of A and the sacrifice of B.
- Therefore, it is not the correct adjustment.
d) Debit Goodwill with Rs.10,000 and Credit A and B with Rs.5,000 each:
- This option suggests that Goodwill should be debited with Rs.10,000 and both A and B should be credited with Rs.5,000 each.
- However, this adjustment does not consider the gain of A and the sacrifice of B.
- Therefore, it is not the correct adjustment.
Conclusion:
The correct adjustment of goodwill in this scenario is to debit A and credit B with Rs.5,000. This adjustment takes into account the gain of A and the sacrifice of B, making it the appropriate adjustment.
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Goodwill of the firm is 30,000. Gain of A is 1/6 and Sacrifice of B is 1/6. How will be adjust goodwill?a)Debit B and Credit A with Rs.5,000b)Debit A and Credit B with Rs.5,000c)Debit A and B with 15,000 each and Credit Goodwill with Rs.30,000d)Debit Goodwill with Rs.10,000 and Credit A and B with Rs.5,000 eachCorrect 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 Goodwill of the firm is 30,000. Gain of A is 1/6 and Sacrifice of B is 1/6. How will be adjust goodwill?a)Debit B and Credit A with Rs.5,000b)Debit A and Credit B with Rs.5,000c)Debit A and B with 15,000 each and Credit Goodwill with Rs.30,000d)Debit Goodwill with Rs.10,000 and Credit A and B with Rs.5,000 eachCorrect 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 Goodwill of the firm is 30,000. Gain of A is 1/6 and Sacrifice of B is 1/6. How will be adjust goodwill?a)Debit B and Credit A with Rs.5,000b)Debit A and Credit B with Rs.5,000c)Debit A and B with 15,000 each and Credit Goodwill with Rs.30,000d)Debit Goodwill with Rs.10,000 and Credit A and B with Rs.5,000 eachCorrect answer is option 'B'. Can you explain this answer?.
Goodwill of the firm is 30,000. Gain of A is 1/6 and Sacrifice of B is 1/6. How will be adjust goodwill?a)Debit B and Credit A with Rs.5,000b)Debit A and Credit B with Rs.5,000c)Debit A and B with 15,000 each and Credit Goodwill with Rs.30,000d)Debit Goodwill with Rs.10,000 and Credit A and B with Rs.5,000 eachCorrect 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 Goodwill of the firm is 30,000. Gain of A is 1/6 and Sacrifice of B is 1/6. How will be adjust goodwill?a)Debit B and Credit A with Rs.5,000b)Debit A and Credit B with Rs.5,000c)Debit A and B with 15,000 each and Credit Goodwill with Rs.30,000d)Debit Goodwill with Rs.10,000 and Credit A and B with Rs.5,000 eachCorrect 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 Goodwill of the firm is 30,000. Gain of A is 1/6 and Sacrifice of B is 1/6. How will be adjust goodwill?a)Debit B and Credit A with Rs.5,000b)Debit A and Credit B with Rs.5,000c)Debit A and B with 15,000 each and Credit Goodwill with Rs.30,000d)Debit Goodwill with Rs.10,000 and Credit A and B with Rs.5,000 eachCorrect answer is option 'B'. Can you explain this answer?.
Solutions for Goodwill of the firm is 30,000. Gain of A is 1/6 and Sacrifice of B is 1/6. How will be adjust goodwill?a)Debit B and Credit A with Rs.5,000b)Debit A and Credit B with Rs.5,000c)Debit A and B with 15,000 each and Credit Goodwill with Rs.30,000d)Debit Goodwill with Rs.10,000 and Credit A and B with Rs.5,000 eachCorrect answer is option 'B'. Can you explain this answer? in English & in Hindi are available as part of our courses for Commerce.
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Here you can find the meaning of Goodwill of the firm is 30,000. Gain of A is 1/6 and Sacrifice of B is 1/6. How will be adjust goodwill?a)Debit B and Credit A with Rs.5,000b)Debit A and Credit B with Rs.5,000c)Debit A and B with 15,000 each and Credit Goodwill with Rs.30,000d)Debit Goodwill with Rs.10,000 and Credit A and B with Rs.5,000 eachCorrect answer is option 'B'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
Goodwill of the firm is 30,000. Gain of A is 1/6 and Sacrifice of B is 1/6. How will be adjust goodwill?a)Debit B and Credit A with Rs.5,000b)Debit A and Credit B with Rs.5,000c)Debit A and B with 15,000 each and Credit Goodwill with Rs.30,000d)Debit Goodwill with Rs.10,000 and Credit A and B with Rs.5,000 eachCorrect answer is option 'B'. Can you explain this answer?, a detailed solution for Goodwill of the firm is 30,000. Gain of A is 1/6 and Sacrifice of B is 1/6. How will be adjust goodwill?a)Debit B and Credit A with Rs.5,000b)Debit A and Credit B with Rs.5,000c)Debit A and B with 15,000 each and Credit Goodwill with Rs.30,000d)Debit Goodwill with Rs.10,000 and Credit A and B with Rs.5,000 eachCorrect answer is option 'B'. Can you explain this answer? has been provided alongside types of Goodwill of the firm is 30,000. Gain of A is 1/6 and Sacrifice of B is 1/6. How will be adjust goodwill?a)Debit B and Credit A with Rs.5,000b)Debit A and Credit B with Rs.5,000c)Debit A and B with 15,000 each and Credit Goodwill with Rs.30,000d)Debit Goodwill with Rs.10,000 and Credit A and B with Rs.5,000 eachCorrect answer is option 'B'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice Goodwill of the firm is 30,000. Gain of A is 1/6 and Sacrifice of B is 1/6. How will be adjust goodwill?a)Debit B and Credit A with Rs.5,000b)Debit A and Credit B with Rs.5,000c)Debit A and B with 15,000 each and Credit Goodwill with Rs.30,000d)Debit Goodwill with Rs.10,000 and Credit A and B with Rs.5,000 eachCorrect answer is option 'B'. Can you explain this answer? tests, examples and also practice Commerce tests.
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