Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Admission of a Partner

Question:

Based on following, answer the question.

Amrita and Kalyani are partners sharing profits in the ratio of 3:2. They decided to expand the business by admitting Suraj as new partner for 1/4th share. Suraj's share of goodwill is valued at ₹90,000 for which he compensated Amrita and Kalyani in the ratio of 1:4. Following information is also provided:

Particulars Book value (₹) Revalued figure (₹)
Machinery 25,00,000 27,00,000
Land 10,00,000 50,00,000
Computers 2,50,000 50,000

 Workmen Compensation Fund  ₹5,00,000. Claim against workmen compensation is ₹2,00,000 and goodwill appeared in the books at ₹60,000.

What is Amrita's share in workmen's compensation fund?

Options:

₹300000

₹180000

₹120000

₹100000

Correct Answer:

₹180000

Explanation:

 Workmen Compensation Fund  ₹5,00,000. Claim against workmen compensation is ₹2,00,000.
Excess of fund after claim is = 500000 -200000
                                            =  ₹300000
This will be distributed in old ratio.
Amrita's share = 300000 x 3/5
                       = ₹180000