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Question : Murari and Vohra of Chandigarh were partners in a firm with capitals of Rs. 1,20,000 and Rs. 1,60,000 respectively. On 1.4 .2018 they admitted their manager, Robin Gurung of Meghalaya, as a partner for one-fourth share in profits on his payment of Rs. 2,00,000 as his capital and Rs. 90,000 for his one-fourth share of goodwill.

On that date the creditors of Murari and Vohra were Rs. 60,000 and Bank overdraft was Rs. 15,000 . Their assets apart from cash included Stock Rs.10,000; Debtors Rs.40,000;
Plant and Machinery Rs.80,000; Land and Building Rs.2,00,000. It was agreed that stock should be depreciated by Rs.2,000; Plant and Machinery by 20%, Rs. 5,000 should be written off as bad debts and Land and Building should be appreciated by 25%.
Question:
After all adjustment the balance of their capitals are

Option 1: Murari 1,78,50,0 Vohra 2,18,500, and Robin Rs 2,00,000

Option 2: Murari Rs 166,000, Vohra 1,88,500 and Robin Rs 2,00,000

Option 3: Murari Rs 1,55,000, Vohra 175,000 and Robin Rs 2,00,000

Option 4: None of the above


Team Careers360 19th Jan, 2024
Answer (1)
Team Careers360 22nd Jan, 2024

Correct Answer: Murari 1,78,50,0 Vohra 2,18,500, and Robin Rs 2,00,000


Solution : Answer = Murari 1,78,500, Vohra 2,18,500 and Robin Rs 2,00,000

Partner's Capital Account

Particulars Murari Vohra Robin Particulars Murari Vohra Robin
By Bank B/D 1,20,000 1,60,000 -
By R/r (profit) 13,500 13,500 -
Bal. c/d 1,78,500 2,18,500 2,00,000 By Bank 2,00,000
By Premium for Goodwill 45,000 45,000 -
1,78,500 2,18,500 2,00,000 1,78,500 2,18,500 2,00,000

Hence, the correct option is 1.

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