A, B and C are partners in the firm, sharing profits in the ratio of 2 : 2 : 1. Their Capital Accounts stand as ₹ 50,000, ₹ 50,000 and ₹ 25,000, respectively.
A, B and C are partners in the firm, sharing profits in the ratio of 2 : 2 : 1. Their Capital Accounts stand as ₹ 50,000, ₹ 50,000 and ₹ 25,000, respectively. B retired from the firm and balance in the General Reserve on that date was ₹ 15,000. If goodwill of the firm is ₹ 30,000 and profit on revaluation is ₹ 7,050, what amount will be transferred to B’s Loan Account?
a) ₹ 50,820
b) ₹ 70,820
c) ₹ 8,820
d) ₹ None of these
Anurag Pathak Changed status to publish July 2, 2023
Ans – b)
Solution:-
B’s share in General Reserve = 15,000 × 2/5 = ₹ 6,000
B’s share in Goodwill = 30,000 × 2/5 = ₹ 12,000
B’s share in Revaluation Profit = 7050 × 2/5 = ₹ 2820
B’s Loan = opening capital + share in General Reserve + Share in Goodwill + Share in Revaluation gain
B’s Loan = 50,000 + 6,000 + 12,000 + 2,820
B’s Loan = ₹ 70820
Anurag Pathak Changed status to publish July 2, 2023
