Question

1 Ques 2Ques 3Ques From the figures given below, calculate goodwill according to capitafization of super profits: Actual Average Profits Rs. 72,000 Normal rate of Return 10% Assets Rs. 9,70,000 Liabilities Rs. 4,00,000 W.X,Y and Z are partners sharing profits and losses in the ratio of 2:2:1:1. They decided to share profits in future in the ratio of 43:2-1. For this purpose goodwill of the firm was valued at Rs. 1,80,000. There was also a reserve of Rs. 60,000 in the books of the firm. Find out sacrificing and gaining ratio and pass necessary journal entry assuming that partners do not want to distribute the reserve. Akshara and Samiksha are in partnership. Business is being carried from the property owned by Akshara on a monthly rent of Rs. 5,000, Akshara is entitled to 2 salary of Rs. 40,000 per quarter and Samiksha is to get commission of 4% on net sales, which during the year was Rs. 50,00,000. Net profit for the year ended 31" March, 2018 before providing for rent was Rs. 5,00,000 You are required to show the distribution of profit. Arun and Bimal are partners sharing profits and losses in the ratio of 3:2.On 31" March 2020, their Balance Sheet was as under: Liabilities Rs. Assets Creditors 70,000 Bank 40,000 Capital Accounts: Debtors 1,20,000 Arun 1,50,000 Stock 60,000 Bimal 80.000 2,30,000 Furniture 50,000 Goodwill 30,000 4Ques Rs. 3,00,000 3,00,000 On the above date Mohan is admitted as a partner Arun surrendered 1/6 of his share and Bimal 1/3 of his share in favour of Mohan. Goodwill is valued at Rs. 1,20,000. Mohan brings only of his share of goodwill in cash and Rs. 1,00,000 as his share of capital. Following adjustments are agreed upon: Stock is to be reduced to Rs. 56,000 and furniture by Rs. 5,000 (*) There is an unrecorded asset worth Rs. 20,000. () One month's rent of Rs. 15,000 is outstanding. Tiv)A creditor for goods purchased for Rs. 10,000 had been omitted to be recorded although the goods had been correctly included in stock. Insurance premium amounting to Rs. 8,000 was debited to P&L Account of shich,000 is related to the period after 31" March 2020. You are required to prepare Revaluation Account, Partner's capital Accounts.

Answer 1

1)Calculation of Goodwill Under Capitalization

Goodwill = (Super Profits *100)/Normal rate of returm

Profit = Capital Employed *(Required Rate of Return/100)

Capital Employed = Total Assets - Total Liabilities

=970000-400000

= 570000

Profit = 570000*10%= 57000

Average Profit = 72000

Super Profit = Average Profit - Required Profit

= 72,000-57,000=15,000

So Good will = 15,000*100/10= 1,50,000

Good will Under Super Profit Method : 1,50,000

3)  

Profit and Loss Appropriation Account
Date	Particulars	Amount	Date	Particulars	Amount
			31-3-2018	Profit and loss A/c    (Net Profi transferred)	600,000.00
	Rent ( For one year)	60,000.00
	Akshara's Salary	120,000.00
	Commission (Samiksha's)	20,000.00
31-3-2018	Akshara' s Capital A/c	200,000.00
31-3-2018	Samiksha's Capital A/c	200,000.00
		600,000.00			600,000.00

Akshara Ans Samiksha Profit Share = 2,000,000 Each