A and B are partners sharing profits in the ratio of 3 : 2. Their books showed good will at Rs. 3,000. C is admitted with ¼ th share of profits 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?
A. Goodwill is raised by Rs. 12,000
B. C will remain as debtor for Rs. 3,000
C. C’s A/c. is debited for Rs. 3,000
D. Goodwill is raised by Rs. 9,000
Answer:D
A and B are partners sharing profits in the ratio of 3 : 2. Their books showed good will at Rs. 3,000. C is admitted with ¼ th share of profits 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?
A. Goodwill is raised by Rs. 12,000 B. C will remain as debtor for Rs. 3,000 C. C’s A/c. is debited for Rs. 3,000 D. Goodwill is raised by Rs. 9,000