Radha, Seeta and Laxmi were partners sharing profits and losses in the ratio of 2:3:5. Seeta retired on 1st June, 2017 and Goodwill of the firm is to be valued at Rs. 1,40,000 on that date. What will be the treatment for adjustment of Goodwill?

Question

TuteeHUB · Accepted Answer

NA

TuteeHUB · Answer

Radha’s capital A/c will be debited by Rs. 8,000 and Laxmi’s capital A/c will be debited by Rs. 20,000.

TuteeHUB · Answer

Seeta’s Capital A/c will be credited by Rs. 28,000.

TuteeHUB · Answer

All Partner’s capital A/cs will be credited by Rs. 1,40,000 in Profit Sharing Ratio.

TuteeHUB · Answer

Both (a) and (b).

1.	Radha, Seeta and Laxmi were partners sharing profits and losses in the ratio of 2:3:5. Seeta retired on 1st June, 2017 and Goodwill of the firm is to be valued at Rs. 1,40,000 on that date. What will be the treatment for adjustment of Goodwill?
A.	Radha’s capital A/c will be debited by Rs. 8,000 and Laxmi’s capital A/c will be debited by Rs. 20,000.
B.	Seeta’s Capital A/c will be credited by Rs. 28,000.
C.	All Partner’s capital A/cs will be credited by Rs. 1,40,000 in Profit Sharing Ratio.
D.	Both (a) and (b).
Answer» E.

Radha, Seeta and Laxmi were partners sharing profits and losses in the ratio of 2:3:5. Seeta retired on 1st June, 2017 and Goodwill of the firm is to be valued at Rs. 1,40,000 on that date. What will be the treatment for adjustment of Goodwill?

Discussion

No Comment Found

Related MCQs

Reply to Comment