A and B share profits 3:2. They admit C for 1/5th share. C brings ₹50,000 as capital and ₹20,000 as goodwill. Goodwill is withdrawn by old partners. The amount credited to A's capital for goodwill will be: MCQ with Answer and Explanation

A and B share profits 3:2. They admit C for 1/5th share. C brings ₹50,000 as capital and ₹20,000 as goodwill. Goodwill is withdrawn by old partners. The amount credited to A's capital for goodwill will be:
A. ₹8,000
B. ₹10,000
C. ₹20,000
D. ₹12,000
Answer: Option D
Solution (By JKSSB Mock Tests)
Goodwill brought by C is distributed in sacrificing ratio, which is old ratio 3:2. A's share = 20,000 * 3/5 = ₹12,000.

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Practice More Accountancy and Book Keeping Questions

Question #1
On attaining majority, a minor admitted to benefits has the option to become a partner within:
A. 3 months
B. 2 years
C. 1 year
D. 6 months

Correct Answer: Option D


Explanation:
Within 6 months of attaining majority, he must decide whether to become a partner or not.

Question #2
The 'Alternate Minimum Tax' (AMT) applies to:
A. Non-corporate taxpayers claiming deductions under certain sections
B. Foreign companies
C. All companies
D. All individuals

Correct Answer: Option A


Explanation:
AMT is for non-corporate assessees having adjusted total income exceeding ₹20 lakhs and claiming specified deductions.

Question #3
A 'Cash Generating Unit' is defined under:
A. AS 2 Inventories
B. AS 14 Amalgamation
C. AS 10 Fixed Assets
D. AS 28 Impairment of Assets

Correct Answer: Option D


Explanation:
CGU is a concept used in impairment testing under AS 28.