Balance of A,B & C sharing profits & losses in proportionate to their capitals, stood as:...

  

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Balance of A,B & C sharing profits & losses in proportionate to their capitals, stood as: A = 2,00,000 B = 3,00,000 C = 2,00,000 A desired to retire from the firm, B and C share the future profits equally, Goodwill of the entire firm be valued at 1,40,000 and no Goodwill account being raised. A Credit Partner's Capital A/c with old profit sharing ratio for 1,40,000. B с D Credit Partner's Capital A/c with new profit sharing ratio for 1,40,000. Credit A's Capital A/c with 40,000 and debit B's Capital A/c with 10,000 & C's Capital A/c with 30,000. Credit Partner's Capital A/c with gaining ratio for 1,40,000. Balance of A,B & C sharing profits & losses in proportionate to their capitals, stood as: A = 2,00,000 B = 3,00,000 C = 2,00,000 A desired to retire from the firm, B and C share the future profits equally, Goodwill of the entire firm be valued at 1,40,000 and no Goodwill account being raised. A Credit Partner's Capital A/c with old profit sharing ratio for 1,40,000. B с D Credit Partner's Capital A/c with new profit sharing ratio for 1,40,000. Credit A's Capital A/c with 40,000 and debit B's Capital A/c with 10,000 & C's Capital A/c with 30,000. Credit Partner's Capital A/c with gaining ratio for 1,40,000.

Answer rating: 100% (QA)

Correct option is C Profit sharing ratio of AB and C is in ... View the full answer