X and Y are sharing profits in the ratio of 5:4. They admit Z as a new partner for 1/6th share in the profits. New ratio agreed upon is 3:2:1. Z brings Rs.2,00,000 as capital but unable to bring premium for goodwill in cash. | |
At the time of admission of Z, Goodwill to be valued by Capitalization of average profit of last 3 years. | |
At the year ending 31st March 2019 | Profit Rs.39,000 (including abnormal loss of Rs.9,000) |
At the year ending 31st March 2020 | Profit Rs.83,000 (including abnormal gain of Rs.8,000) |
At the year ending 31st March 2021 | Profit Rs.72,000 |
On 1st April 2021, the firm had assets of Rs.8,00,000, Creditors Rs.3,60,000, General Reserve Rs.40,000, Partners capital Accounts Balance Rs.4,00,000. | |
Normal rate of return expected 13% from this type of business. |
A) 62,333
B) 62,000
C) 63,000
D) 65,000
Correct Answer: D
Solution :
65,000You need to login to perform this action.
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