Case Study No.1: 3:-Change IN Profit Sharing Ratio Among Existing Partners Case Study Based Questions
Case Study No.1: 3:-Change IN Profit Sharing Ratio Among Existing Partners Case Study Based Questions
Case Study No.1: 3:-Change IN Profit Sharing Ratio Among Existing Partners Case Study Based Questions
EXISTING PARTNERS
Kolkata. Bhavna noticed that a lot of food is left at the end of the day. To avoid
wastage, she suggested that it can be distributed to the needy. Rajiv wanted that
it should be mixed with the food being served in the next day. Rajiv then give a
proposal that if his share in the profit increased, he will not mind free distribution
of leftover food. Bhavna happily agreed. So, they decided to change their profit-
sharing ratio 1:2 with immediate effect. On that day revaluation of assets and
reassessment of liabilities was carried out that resulted into again of Ra. 18,000.
On that date the goodwill of the firm was valued at Rs.1,20,000.
Based on the above information, you are required to answer the following
questions:
1 Sacrifice/Gain of Bhavna and Rajiv will be
A.Bhavna sacrifice 1/6,Rajiv Gain 1/6
B. Bhavn Gain 1/6,RajivSacrifice 1/6
C.Only Bhavna gains 1/6
D.Only Rajiv Sacrifice 1/6
2 At the time of change in Profit Sharing ratio , gaining partner capital account is
…………………… and sacrificing partner is......................for adjustment of Goodwill.
A.Credited, Debited
B.Debited,Credited
C.Increase,Decrease
D.Decreased , Credited
CASE STUDY NO.2
Joseph and Monu were partners in a firm carrying on a tiffin service in Mumbai.
Joseph noticed that a lot of food is left at the end of the day. To avoid wastage,
she suggested that it should be distributed to the needy. Monu wanted that it
should be mixed with the food being served the next day. Monu then gave a
proposal that if his share in the profit is increased, he will not mind free
CASE distribution of left over food. Joseph happily agreed. So they decided to change
STUDY their profit sharing ratio to 2:3 with immediate effect. On that date, revaluation of
NO.2 assets and reassessment of liabilities was carried out that resulted into a profit of
₹8,000. On that date, the goodwill of the firm was valued as ₹30,000.
2 Value of Goodwill is
a. 3,00,000 b. 3,60,000
c. 3,72,000 d. 3,50,000
3 Sharvan and Chintan will compensate Arman by paying goodwill as
a. . 12,000 and 48,000 respectively
b. 24,000 and 24,000 respectively
c. 30,000 each
d. 60,000 each