Q7. A firm earns ₹1,10,000. The normal rate of return is 10%. The assets of the firm amounted to ₹11,00,000 and liabilities to ₹1,00,000. Value of goodwill by capitalisation of Average Actual Profits will be:
(A) ₹2,00,000
(B) ₹10,000
(C) ₹5,000
(D) ₹1,00,000
Q8. A, B and C are partner sharing profits in the ratio of 1 : 2 : 3. On 1-4-2016 they decided to share the profits equally. On the date there was a credit balance of ₹1,20,000 in their Profit and Loss Account and a balance of ₹1,80,000. General Reserve Account. Instead of closing the General Reserve Account and Profit and Loss Account, it is decided to record an adjustment entry the same. In the necessary adjustment entry to give effect to the above arrangement:
(A) Dr. A by ₹50,000; Cr. B by ₹50,000
(B) Cr. A by ₹50,000; Dr. B by ₹50,000
(C) Dr. A by ₹50,000, Cr. C by ₹50,000
(D) Cr. A by ₹50,000; Dr. C by ₹50,000
Q.9. X, Y and Z are partners in a firm sharing profits in the ratio 4 : 3 : 2. Their Balance Sheet as at 31-3-2016 showed a debit balance of Profit & Loss A/c ₹1,80,000. From 1-4-2016 they will share profits equally. In the necessary journal entry to give effect to the above arrangement when X, Y and Z decided not to close the Profit & Loss Account:
(A) Dr. X by ₹20,000, Cr. Z by ₹20,000
(B) Cr. X by ₹20,000; Dr. Z by ₹20,000
(C) Dr. X by ₹40,000; Cr. Z by ₹40,000
(D) Cr. X by ₹40,000; Dr. Z by ₹40,000
