X and Y are partners sharing the profit in the ratio of 3 : 2. They take Z as the new partner who is supposed to bring Rs. 25,000 against capital and Rs. 10,000 against goodwill, New profit sharing ratio is 1 : 1 : 1. Z is able to bring only his share of capital. How this will be treated in the books of the firm?
A. X and Y will share goodwill bought by Z as Rs. 4,000 : Rs. 1,000
B. Goodwill be raised to Rs. 30,000 in old profit sharing ratio
C. Both A and B
D. No treatment in the books of the firm
Answer: Option B
This Question Belongs to Commerce >> Accounting
Accounting provides information on
A. Cost and income for managers
B. Company's tax liability for a particular year
C. Financial conditions of an institutions
D. All of the above
The long term assets that have no physical existence but are rights that have value is known as
A. Current assets
B. Fixed assets
C. Intangible assets
D. Investments
The assets that can be converted into cash within a short period (i.e. 1 year or less) are known as
A. Current assets
B. Fixed assets
C. Intangible assets
D. Investments
Patents, Copyrights and Trademarks are
A. Current assets
B. Fixed assets
C. Intangible assets
D. Investments
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