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Commerce · Q1949

Accounting

Graduate and Post Graduate · Commerce · question 1949

Q1949

A and B are partners sharing profits in the ratio of 3 : 2. Their books showed goodwill at Rs. 3,000. C is admitted with 1/4^ th share of profit and brings Rs. 10,000 as his capital. But, he is not able to bring in cash for his share of goodwill Rs. 3,000. How will you treat this?

A and B are partners sharing profits in the ratio of 3 : 2. Their books showed goodwill at Rs. 3,000. C is admitted with share of profit and brings Rs. 10,000 as his capital. But, he is not able to bring in cash for his share of goodwill Rs. 3,000. How will you treat this?
A.
Goodwill is raised by Rs. 12,000
B.
C will remain as debtor for Rs. 3,000
C.
C's A/c is debited for Rs. 3,000
Answer
D.
Goodwill is raised by Rs. 9,000

Answer: Option C

Solution

Answer: Option C
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