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Home Questions 8BR4CYLQDR
Target Exam

CUET

Subject

Accountancy Part A

Chapter

Reconstitution of Partnership Firm: Retirement and Death

Question:

Jay, Kirti, Ekta and Shamira are partners in a firm sharing profits and losses in the ratio of 2:1:2:1. On Jay’s retirement, the goodwill of the firm is valued at Rs. 36,000. Kirti, Ekta and Shamira decided to share future profits equally. Which of the following is correct journal entry for the treatment of goodwill in this case ?

Options:
Particular’sDr AmountCr Amount
Kirti’s Capital A/c    Dr.6,000
    To Shamira’s Capital A/c3,000
    To Jay’s Capital A/c3,000
Particular’sDr AmountCr Amount
Kirti’s Capital A/c    Dr.6,000
Shamira’s Capital A/c    Dr6,000
    To Jay’s Capital A/c12,000
Particular’sDr AmountCr Amount
Kirti’s Capital A/c    Dr.24,000
Shamira’s Capital A/c    Dr12,000
    To Jay’s Capital A/c36,000
Particular’sDr AmountCr Amount
Kirti’s Capital A/c    Dr.6,000
Ekta’s Capital A/c    Dr6,000
    To Jay’s Capital A/c12,000
Correct Answer:
Particular’sDr AmountCr Amount
Kirti’s Capital A/c    Dr.6,000
Shamira’s Capital A/c    Dr6,000
    To Jay’s Capital A/c12,000
Explanation:

The correct answer is Option (2) → 

Particular’sDr AmountCr Amount
Kirti’s Capital A/c    Dr.6,000
Shamira’s Capital A/c    Dr6,000
    To Jay’s Capital A/c12,000

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