Question

A and B share profits and losses equally. They have $20000 each as capital. they admit C as equal partner and goodwill was valued at $30000 as his capital and necessary cash towards his share of goodwill. Goodwill Account will not remain open in books. If profit on revaluation is $13000, find the closing balance of the capital accounts.

pls answer it with solution​

Answer 1

Answer:

C ka share goodwill ka 1/3*30000=10000

Explanation:

A

=20000+5000+6500=31500

B=20000+5000+6500=31500

C=30000(his capital)

(6500 . 13500 /2 )

Answer 2

GIVEN :  A's Capital = 20,000 ; B's Capital = 20,000 ;  Goodwill of the firm is 30,000 ; Revaluation Profit is 13,000.  

TO FIND : Closing Capital of all partners

SOLUTION :

Goodwill of firm is 30,000.

• Now we will find the share of C in goodwill because he is admitted as new partner in business and he should bring his share of goodwill
• His share of goowill will be distributed to sacrificing partners.

• C's share in goodwill = 30,000 ×$\frac{1}{3}$

                                   = 10,000

• Now we will find sacrificing ratio  .

• Sacrificing Ratio = Old Profit Ratio - New Profit Ratio

Old profit sharing ratio of A and B was 1 :1 and new profit sharing ratio of A,B,C is 1 : 1 : .

A's Sacrificing Ratio = $\frac{1}{2}$ - $\frac{1}{3}$

                                  = $\frac { 3 - 2 }{6}$

                                   = $\frac{1}{6}$

B's Sacrificing Ratio = $\frac{1}{2}$ - $\frac{1}{3 }$

                                = $\frac{1}{6}$

Sacrificing Ratio is 1 : 1.

So A's share in goodwill = $\frac{1}{2}$  × 10,000

                                         = 5,0000

B's share in goodwill be 5,000.

Revaluation Profit = 13,000

Revaluation Profit will be shared in old partners in old profit sharing ration.

A share in profit = 13,000 × $\frac{1}{2 }$

                            = 6,500

B share in profit = 6,500

A Capital = 20,000 +  5,000 + 6,500

               =  31,500

B Capital = 20,000 + 5,000 + 6,500

                 = 31,500

A's Closing capital is 31,500 and B's Closing capital is 31,500  .