A and B are two partners sharing profits in the ratio of 2 : 1 . C will bring in Rs. 1,00,000 as capital and Rs. 60,000 as his share of goodwill for 1/4 share in profit.Stock in the balance sheet is given as Rs. 40,000.Stock is found overvalued by Rs. 4,000.Value of stock to be shown in Balance shee

A and B are two partners sharing profits in the ratio of 2 : 1 . C will bring in Rs. 1,00,000 as capital and Rs. 60,000 as his share of goodwill for 1 - Accountancy MCQ CUET Accountancy 2022 20 July Shift 1 2026 | ExamTest.live

easyMCQCUET Accountancy 2022 20 July Shift 12026Accountancy

1 mark

A and B are two partners sharing profits in the ratio of 2 : 1 . C will bring in Rs. 1,00,000 as capital and Rs. 60,000 as his share of goodwill for \frac{1}{4} share in profit.Stock in the balance sheet is given as Rs. 40,000.Stock is found overvalued by Rs. 4,000.Value of stock to be shown in Balance sheet after admission will be:

The existing book value of the stock is Rs. 40,000. Since it is overvalued by Rs. 4,000, the correct value is 40, 000 - 4, 000 = Rs. 36, 000 . This is the value at which stock will be shown in the new Balance Sheet.

Try it yourself before checking the explanation above.

A and B are two partners sharing profits in the ratio of 2 : 1 . C will bring in Rs. 1,00,000 as capital and Rs. 60,000 as his share of goodwill for \frac{1}{4} share in profit.Stock in the balance sheet is given as Rs. 40,000.Stock is found overvalued by Rs. 4,000.Value of stock to be shown in Balance sheet after admission will be:

Rs. 48,000

Rs. 32,000

Rs. 36,000

Rs. 40,000

Practice with timed mock tests and track your performance across Accountancy.