{"id":43914,"date":"2024-04-15T21:36:15","date_gmt":"2024-04-15T21:36:15","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=43914"},"modified":"2024-04-15T21:36:15","modified_gmt":"2024-04-15T21:36:15","slug":"a-and-b-are-partners-sharing-profits-in-the-ratio-of-3-2-their-books-showed-goodwill-at-rs-3000-c-is-admitted-with-frac14textth-share-of-profit-and-brings-rs-10000-as-his","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/a-and-b-are-partners-sharing-profits-in-the-ratio-of-3-2-their-books-showed-goodwill-at-rs-3000-c-is-admitted-with-frac14textth-share-of-profit-and-brings-rs-10000-as-his\/","title":{"rendered":"A and B are partners sharing profits in the ratio of 3 : 2. Their books showed goodwill at Rs. 3,000. C is admitted with $${\\frac{1}{4}^{{\\text{th}}}}$$ share of profit and brings Rs. 10,000 as his capital. But, he is not able to bring in cash for his share of goodwill Rs. 3,000. How will you treat this?"},"content":{"rendered":"<p>[amp_mcq option1=&#8221;Goodwill is raised by Rs. 12,000&#8243; option2=&#8221;C will remain as debtor for Rs. 3,000&#8243; option3=&#8221;C&#8217;s A\/c is debited for Rs. 3,000&#8243; option4=&#8221;Goodwill is raised by Rs. 9,000&#8243; correct=&#8221;option3&#8243;]<!--more--><\/p>\n<p>The correct answer is: C. C&#8217;s A\/c is debited for Rs. 3,000.<\/p>\n<p>Explanation:<\/p>\n<p>A and B are partners sharing profits in the ratio of 3 : 2. Their books showed goodwill at Rs. 3,000. C is admitted with $\\frac{1}{4}^{{\\text{th}}}$ share of profit and brings Rs. 10,000 as his capital. But, he is not able to bring in cash for his share of goodwill Rs. 3,000.<\/p>\n<p>In this case, C&#8217;s capital will be Rs. 10,000 and his share of goodwill will be Rs. 3,000. Since he is not able to bring in cash for his share of goodwill, he will remain as a debtor for Rs. 3,000.<\/p>\n<p>The journal entry for this transaction will be:<\/p>\n<p>Dr. C&#8217;s A\/c                                  3,000<br \/>\nCr. Goodwill A\/c                                  3,000<\/p>\n<p>This entry will record C&#8217;s share of goodwill and will also show that he is a debtor for Rs. 3,000.<\/p>\n<p>The following are the other options and their explanations:<\/p>\n<p>A. Goodwill is raised by Rs. 12,000. This option is incorrect because the goodwill of the firm is already Rs. 3,000. When C is admitted, the goodwill of the firm will not be increased.<\/p>\n<p>B. C will remain as debtor for Rs. 3,000. This option is correct as explained above.<\/p>\n<p>D. Goodwill is raised by Rs. 9,000. This option is incorrect because the goodwill of the firm is already Rs. 3,000. When C is admitted, the goodwill of the firm will not be increased.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>[amp_mcq option1=&#8221;Goodwill is raised by Rs. 12,000&#8243; option2=&#8221;C will remain as debtor for Rs. 3,000&#8243; option3=&#8221;C&#8217;s A\/c is debited for Rs. 3,000&#8243; option4=&#8221;Goodwill is raised by Rs. 9,000&#8243; correct=&#8221;option3&#8243;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[85],"tags":[],"class_list":["post-43914","post","type-post","status-publish","format-standard","hentry","category-accounting","no-featured-image-padding"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>A and B are partners sharing profits in the ratio of 3 : 2. Their books showed goodwill at Rs. 3,000. C is admitted with $${\\frac{1}{4}^{{\\text{th}}}}$$ share of profit and brings Rs. 10,000 as his capital. But, he is not able to bring in cash for his share of goodwill Rs. 3,000. How will you treat this?<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/a-and-b-are-partners-sharing-profits-in-the-ratio-of-3-2-their-books-showed-goodwill-at-rs-3000-c-is-admitted-with-frac14textth-share-of-profit-and-brings-rs-10000-as-his\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"A and B are partners sharing profits in the ratio of 3 : 2. Their books showed goodwill at Rs. 3,000. C is admitted with $${\\frac{1}{4}^{{\\text{th}}}}$$ share of profit and brings Rs. 10,000 as his capital. But, he is not able to bring in cash for his share of goodwill Rs. 3,000. How will you treat this?\" \/>\n<meta property=\"og:description\" content=\"[amp_mcq option1=&#8221;Goodwill is raised by Rs. 12,000&#8243; option2=&#8221;C will remain as debtor for Rs. 3,000&#8243; option3=&#8221;C&#8217;s A\/c is debited for Rs. 3,000&#8243; option4=&#8221;Goodwill is raised by Rs. 9,000&#8243; correct=&#8221;option3&#8243;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/exam.pscnotes.com\/mcq\/a-and-b-are-partners-sharing-profits-in-the-ratio-of-3-2-their-books-showed-goodwill-at-rs-3000-c-is-admitted-with-frac14textth-share-of-profit-and-brings-rs-10000-as-his\/\" \/>\n<meta property=\"og:site_name\" content=\"MCQ and Quiz for Exams\" \/>\n<meta property=\"article:published_time\" content=\"2024-04-15T21:36:15+00:00\" \/>\n<meta name=\"author\" content=\"rawan239\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"rawan239\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"A and B are partners sharing profits in the ratio of 3 : 2. Their books showed goodwill at Rs. 3,000. C is admitted with $${\\frac{1}{4}^{{\\text{th}}}}$$ share of profit and brings Rs. 10,000 as his capital. But, he is not able to bring in cash for his share of goodwill Rs. 3,000. How will you treat this?","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/exam.pscnotes.com\/mcq\/a-and-b-are-partners-sharing-profits-in-the-ratio-of-3-2-their-books-showed-goodwill-at-rs-3000-c-is-admitted-with-frac14textth-share-of-profit-and-brings-rs-10000-as-his\/","og_locale":"en_US","og_type":"article","og_title":"A and B are partners sharing profits in the ratio of 3 : 2. Their books showed goodwill at Rs. 3,000. C is admitted with $${\\frac{1}{4}^{{\\text{th}}}}$$ share of profit and brings Rs. 10,000 as his capital. But, he is not able to bring in cash for his share of goodwill Rs. 3,000. How will you treat this?","og_description":"[amp_mcq option1=&#8221;Goodwill is raised by Rs. 12,000&#8243; option2=&#8221;C will remain as debtor for Rs. 3,000&#8243; option3=&#8221;C&#8217;s A\/c is debited for Rs. 3,000&#8243; option4=&#8221;Goodwill is raised by Rs. 9,000&#8243; correct=&#8221;option3&#8243;]","og_url":"https:\/\/exam.pscnotes.com\/mcq\/a-and-b-are-partners-sharing-profits-in-the-ratio-of-3-2-their-books-showed-goodwill-at-rs-3000-c-is-admitted-with-frac14textth-share-of-profit-and-brings-rs-10000-as-his\/","og_site_name":"MCQ and Quiz for Exams","article_published_time":"2024-04-15T21:36:15+00:00","author":"rawan239","twitter_card":"summary_large_image","twitter_misc":{"Written by":"rawan239","Est. reading time":"1 minute"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/exam.pscnotes.com\/mcq\/a-and-b-are-partners-sharing-profits-in-the-ratio-of-3-2-their-books-showed-goodwill-at-rs-3000-c-is-admitted-with-frac14textth-share-of-profit-and-brings-rs-10000-as-his\/","url":"https:\/\/exam.pscnotes.com\/mcq\/a-and-b-are-partners-sharing-profits-in-the-ratio-of-3-2-their-books-showed-goodwill-at-rs-3000-c-is-admitted-with-frac14textth-share-of-profit-and-brings-rs-10000-as-his\/","name":"A and B are partners sharing profits in the ratio of 3 : 2. Their books showed goodwill at Rs. 3,000. C is admitted with $${\\frac{1}{4}^{{\\text{th}}}}$$ share of profit and brings Rs. 10,000 as his capital. But, he is not able to bring in cash for his share of goodwill Rs. 3,000. How will you treat this?","isPartOf":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#website"},"datePublished":"2024-04-15T21:36:15+00:00","dateModified":"2024-04-15T21:36:15+00:00","author":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209"},"breadcrumb":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/a-and-b-are-partners-sharing-profits-in-the-ratio-of-3-2-their-books-showed-goodwill-at-rs-3000-c-is-admitted-with-frac14textth-share-of-profit-and-brings-rs-10000-as-his\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/exam.pscnotes.com\/mcq\/a-and-b-are-partners-sharing-profits-in-the-ratio-of-3-2-their-books-showed-goodwill-at-rs-3000-c-is-admitted-with-frac14textth-share-of-profit-and-brings-rs-10000-as-his\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/exam.pscnotes.com\/mcq\/a-and-b-are-partners-sharing-profits-in-the-ratio-of-3-2-their-books-showed-goodwill-at-rs-3000-c-is-admitted-with-frac14textth-share-of-profit-and-brings-rs-10000-as-his\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/exam.pscnotes.com\/mcq\/"},{"@type":"ListItem","position":2,"name":"mcq","item":"https:\/\/exam.pscnotes.com\/mcq\/category\/mcq\/"},{"@type":"ListItem","position":3,"name":"accounting","item":"https:\/\/exam.pscnotes.com\/mcq\/category\/mcq\/accounting\/"},{"@type":"ListItem","position":4,"name":"A and B are partners sharing profits in the ratio of 3 : 2. Their books showed goodwill at Rs. 3,000. C is admitted with $${\\frac{1}{4}^{{\\text{th}}}}$$ share of profit and brings Rs. 10,000 as his capital. But, he is not able to bring in cash for his share of goodwill Rs. 3,000. How will you treat this?"}]},{"@type":"WebSite","@id":"https:\/\/exam.pscnotes.com\/mcq\/#website","url":"https:\/\/exam.pscnotes.com\/mcq\/","name":"MCQ and Quiz for Exams","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/exam.pscnotes.com\/mcq\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209","name":"rawan239","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/761a7274f9cce048fa5b921221e7934820d74514df93ef195a9d22af0c1c9001?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/761a7274f9cce048fa5b921221e7934820d74514df93ef195a9d22af0c1c9001?s=96&d=mm&r=g","caption":"rawan239"},"sameAs":["https:\/\/exam.pscnotes.com"],"url":"https:\/\/exam.pscnotes.com\/mcq\/author\/rawan239\/"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts\/43914","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/comments?post=43914"}],"version-history":[{"count":0,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts\/43914\/revisions"}],"wp:attachment":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/media?parent=43914"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/categories?post=43914"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/tags?post=43914"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}