On 31st March, 2019 the Balance Sheet of Madan and Mohan who share profits and losses in the ratio of 3:2 was as follows:
Balance Sheet of Madan and Mohan as at 31st March, 2019
They decided to admit Gopal on 1st April, 2019 for 1/5th share which Gopal acquired wholly from Mohan on the following terms :
(i) Gopal shall bring ₹ 10,000 as his share of premium for Goodwill.
(ii) A debtor whose dues of ₹ 3,000 were written off as bad debt paid ₹ 2,000 in full settlement.
(iii) A Claim of ₹ 5,000 on account of workmen’s compensation was to be provided for.
(iv) Patents were undervalued by ₹ 2,000. Stock in the books was valued 10% more than its market value.
(v) Gopal was to bring in capital equal to 20% of the combined capitals of Madan and Mohan after all adjustments.
(1) What is Madan’s Share of profit/loss on revaluation?
(a) profit ₹ 2,400
(b) ₹ 1,600 loss
(c) loss ₹ 2,400
(d) profit ₹1,600
2) What is the scarifying ratio of Madan and Mohan
(a) 3:2
(b) 2:3
(c) 0:1
(d) 1:2
3) What is the cash balance available after the admission of Gopal
(a) Rs,. 45,000
(b) ₹ 54,000
(c) ₹ 24,200
(d) ₹45,200
4) What is the closing capital of Mohan.
(a) ₹63,600
(b) ₹52,400
(c) ₹ 23,200
(d) ₹ 51,000
