K, N and P are partners sharing profits and losses in the ratio of 4:3:2 . N retires and the goodwill is valued at Rs. 72,000 . K and P decided to sha - Accountancy MCQ CUET Accountancy 2025 22 May Shift 1 2026 | ExamTest.live

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K, N and P are partners sharing profits and losses in the ratio of 4 : 3 : 2 . N retires and the goodwill is valued at Rs. 72, 000 . K and P decided to share future profits and losses in the ratio of 5 : 3 . Find which of the following statements is not correct?

Solution & Step-by-step Explanation

Let's calculate the values step-by-step:Old Ratio of K, N, P = 4 : 3 : 2 (Shares = \frac{4}{9}, \frac{3}{9}, \frac{2}{9})New Ratio of K, P = 5 : 3 (Shares = \frac{5}{8}, \frac{3}{8}) N’s Share of Goodwill = 72, 000 \times \frac{3}{9} = Rs. 24, 000 This means N's Capital Account must be credited with Rs. 24, 000 . Hence, the statement saying N's capital is debited with Rs. 24, 000 is wrong.Let's check the gaining shares: Gain = New Share - Old Share Gain of K = \frac{5}{8} - \frac{4}{9} = \frac{45 - 32}{72} = \frac{13}{72} Gain of P = \frac{3}{8} - \frac{2}{9} = \frac{27 - 16}{72} = \frac{11}{72} Goodwill compensation by K = 72, 000 \times \frac{13}{72} = Rs. 13, 000 (Debited) Goodwill compensation by P = 72, 000 \times \frac{11}{72} = Rs. 11, 000 (Debited) Thus, statements A, C, and D are perfectly correct. Statement B is incorrect.

Try it yourself before checking the explanation above.

K, N and P are partners sharing profits and losses in the ratio of 4 : 3 : 2 . N retires and the goodwill is valued at Rs. 72, 000 . K and P decided to share future profits and losses in the ratio of 5 : 3 . Find which of the following statements is not correct?

K capital A/c is debited with Rs. 13, 000

N Capital A/c is debited with Rs. 24, 000

N Capital A/c is credited with Rs. 24, 000

P Capital A/c is debited with Rs. 11, 000

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