A and B share profits and losses equally. They have ₹20,000 each as capital. They admit C as a partner. Goodwill was valued at ₹30,000. C is to bring in ₹30,000 as his capital for his 1/3rd share and necessary cash towards his share of goodwill. Goodwill Account will not remain open in books. If profit on revaluation is ₹13,000, find the closing balance of the capital accounts.
Answer & explanation
Correct answer: option 1
| Particulars | A | B | C | Particulars | A | B | C |
| By bal b/d | 20,000 | 20,000 | - | ||||
| By Bank | 30,000 | ||||||
| By premium for goodwill a/c | 5,000 | 5,000 | |||||
| By bal c/d(bf) | 31,500 | 31,500 | 30,000 | By revaluation a/c | 6,500 | 6,500 | |
| 31,500 | 31,500 | 30,000 | 31,500 | 31,500 | 30,000 |