Question

A, B and C are partners in a firm sharing profits and losses in the ratio of 3 : 2 : 1. Their books are closed on March 31st every year. B died on September 30th, 2023 and A and C decided to share future profits in 3 : 2. The executors of B are entitled to: His share of Capital i.e., ₹ 25,00,000 along-with his share of goodwill. The total goodwill of the firm was valued at ₹ 1,20,000. His share of profit up to his date of death on the basis of sales till date of death. Sales for the year ended March 31, 2023 was ₹ 3,00,000, and profit for the same year was 10% on sales. Sales show a growth trend of 20% and percentage of profit earning is reduced by 1%.

You are required to give answer to the following question:

In respect of goodwill: 

पर्याय

• A and C will be debited by ₹ 30,000 and ₹ 10,000 respectively.

• A and C will be debited by ₹ 28,000 and ₹ 12,000 respectively.

• A and C will be debited by ₹ 12,000 and ₹ 28,000 respectively.

• A and C will be debited by ₹ 36,000 and ₹ 84,000 respectively.

Answer 1

A and C will be debited by ₹ 12,000 and ₹ 28,000 respectively.

Explanation:

Gaining Ratio A = `3/5-3/6=(18-15)/30=3/30`

Gaining Ratio C = `2/5-1/6=(12-5)/30=7/30`

B's share of goodwill: `1,20,000xx2/6` = ₹ 40,000

It will be debited to A and C in 3 : 7

A's share = `40,000xx3/10` = ₹ 12,000

B's share = `40,000xx7/10` = ₹ 28,000