Vidya and Jyoti sharing profits equally admit Kalam for 1/5th share in profits. Kalam pays ₹ 50,000 for goodwill out of his share of ₹ 90,000. Goodwill exists in the Balance Sheet at ₹ 1,60,000. Pass Journal entries.
Solution:-
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Balance Sheet as at 31st March, 2023 of Sonam and Shilpa sharing profits in the ratio of 3 : 2 was:
Solution:-
Amar, Akash and Arvind are partners. on the retirement of Akash, Workmen Compensation Reserve has a balance of ₹ 1,50,000. There is a claim of ₹ 37,500 against it. How much amount will be transferred to Akash’s Capital in respect of Workmen Compensation Reserve? a) Nil
Ans – b) Solution:- Workmen Compensation Reserve after claim = 1,50,000 – 37,500 = ₹ 1,12,500 Akash’share in WCR = 1,12,500 × 1/3 = ₹ 37,500
Assertion (A): Admission of a partner means reconstitution of the partnership whereby old partners ceases to exist and new partnership comes into existence
Ans – a) Explanation:- When a new partner admitted into the firm. the partnership agreement among old partners ends and new agreement is prepared with new patners with new profit sharing ratio. In this whole process, the partnership firm comes…
The retirement of a partner is a situation for the continuing partners which is known as
Ans – a) Explanation:- When a partner retires, the partnership agreement is dissolved, but firm continues.
Assertion (A): At the time of retirement of a partner, the remaining partners may decide to adjust their capital in their new profit sharing ratio.
Ans – d) Explanation:- the remaining partners may adjust their capitals in the new profit-sharing ratio and sum total of partners’ adjusted capital is treated as the total capital of the new firm.
At the time of retirement of a partner, if there is undistributed profit in the Balance Sheet of the firm, it
Ans – c) Explanation:- undistributed are the parts of the past year’s profits. that is earned in the old profit-sharing ratio by all the partners. Thus it is distributed among all the partners in the old profit-sharing ratio.
Capital Balances of X, Y and Z sharing profits and losses in proportion to their capitals stood as follows:
Ans – c) Solution:- Old ratio of X, Y and Z = 10,00,000 : 15,00,000 : 10,00,000 2 : 3 : 2 X retired New ratio of Y and Z = 1 : 1 Calculation of Gaining Ratio Y =…
X, Y and Z are partners sharing profits and losses in the ratio of 4/9 : 1/3 : 2/9. Y retires and gives 1/9th of his share in favour of X and remaining in favour of Z. The new profit sharing ratio will be
Ans – a) Explanation:- Old ratio of X, Y and Z is 4/9 : 1/3 : 2/9 after making base equal 4/9 : 1/3 × 3/3 : 2/9 = 4 : 3 : 2 Y gives 1/9 of his share…
Retiring partner is compensated for sacrificing profit share in favour of remaining partners. In what ratio do the remaining partners contribute to such compensation amount?
Ans – c) Explanation:- Retiring partners share is acquired by continuing partners in gaining ratio. Thus all continuing partners compensate retiring partner in gaining ratio.