Question

5. A, B and Care partners in a firm sharing profits and losses in 2:2:1. They admit D as new partner 2 and new ratio is agreed at 2:5:2:1. D brings in the necessary amount for goodwill. Goodwill of the firm is valued at 400000/ in this cash A's Capital account will be credited by. a. 80000 b. 40000 C. 12000 d. * 60000​

Answer 1

Answer:

d) 60000

Explanation:

bcz as d's goodwill is 400000x1/10=40000

sacrificing ratio is A=2/5-2/10=1/5 sacrifice

B=2/5-5/10=1/10 he gains

C=1/5-2/10=0 which means neither sacrifice nor gained

whole premium for goodwill that's 40000 is cr to A 's cap. a/c

compensation paid by B to A is 1/10x200000(he's goodwill share)

=20000

total amount cr. to a's cap. a/c is 60000