Question : A, B, C and D are partners sharing profits in the ratio of 1: 2: 3: 4. D died and his share is taken up by A and B equally. Goodwill was valued at 3 year's purchase of average profits which were Rs. 20,000. General Reserve showed a balance of Rs. 65,000 at the time of D's death. Find out the amount due to him when his capital balance in the balance sheet was Rs. 1,50,000 before any adjustment. Also, calculate the new profit-sharing ratios.

Option 1: Balance of D's Executors a/c Rs 2,00,000 and New profit sharing ratio 3: 4: 3

Option 2: Balance of D's Executors account Rs 2,00,000 and new profit sharing Ratio 1:1

Option 3: Balance of D's executors account Rs 2,50,000 and NPSR 1: 2: 3

Option 4: None of the above

Question : C's Capital Account has a credit balance of Rs.2,00,000; C's Loan Account is showing a debit balance of Rs.40,000. Bank Balance is Rs.3,00,000. Show the treatment of C's Loan Account.

Option 1: Debited C's capital Rs 40,000 and credited C's Loan account Rs 40,000

Option 2: Debited C's capital Rs 1,60,000 and credited C's loan Rs 1,60,000

Option 3: Credited C's capital Rs 40,000 and debited C's loan Rs 40,000

Option 4: None of the above

Question : A, B and C are partners sharing profits in a ratio of 5:3:2. D is admitted and new profit sharing ratio is agreed at 1:2:2:1. Goodwill is valued at Rs 1,20,000. What entry will be passed if a goodwill account is to be raised and written off?

Option 1: Goodwill account debited with Rs 20,000 and crediting old partner capital account and in their old profit sharing ratio

Option 2: Debiting Goodwill account debiting Rs 1,20,000 and old partner's capital account crediting and In their new profit sharing ratio

Option 3: All partner's capital account debiting with Rs 1,20,000 and crediting goodwill account with Rs 1,20,000

Option 4: Both 2 and 3

Question : A and B who share profits in the ratio of 3: 2 had capitals of Rs. 2,00,000 and Rs.1,50,000 respectively. They admit C into partnership from 1st April, 2020 on the following terms for I/3rd share in future profits:
(i) That C to bring Rs. 2,00,000 as capital.
(ii) That C is unable to bring his share of goodwill, goodwill of the firm is valued at Rs.1,50,000. Choose the correct option.

Option 1: Debiting bank a/c Rs 3,00,000 and crediting C's capital account with Rs 3,00,000

Option 2: Debiting Bank account with Rs 2,00,000 and crediting C's capital with Rs 2,00,000

Option 3: Debiting C's current account Rs 50,000 and Crediting A capital account with Rs 30,000 and Rs 20,000

Option 4: Both 2 and 3

Question : A and B are partners in a firm sharing profit and losses in the ratio of 5:3. They admitted C as a new partner for 1/5 th share in the profit. C brought Rs 40,000 for his 1/5 th share in the profit. C brought Rs 40,000 for his 1/5 th share in the profit as premium. They decided to share the profits in the ratio of 3: 1: 1. Choose necessary journal entry in the books of the firm on admission of C.

Option 1: Cash account Dr and credited C's capital account with Rs 40,000

Option 2: Debited C account and credited A with Rs 5000 and Credited B with Rs 35,000

Option 3: Both 1 and 2

Option 4: None of the above