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प्रश्न
Joshi, Pandey and Agarwal were partners in a firm sharing profits in the ratio of 2:2:1. On 31.3.2014, their Balance Sheet was as follows:
| Liabilities |
Amount Rs |
Assets |
Amount Rs |
|
Creditors Bills Payable Agarwal's Loan Capitals Joshi 2,10,000 Pandey 2,04,000 |
51,000 36,000 84,000
4,14,000 |
Cash Debtors Bills payable Furniture Machinery Agarwal’s Capital |
24,000 39,000 27,000 81,000 3,75,000 39,000 |
| 5,85,000 | 5,85,000 |
On 31.12.2014, Agarwal died. The partnership deed provided for the following to the executors of the deceased partner:
(a) His share in the goodwill of the firm, calculated on the basis of three year's purchase of the average profits of the last four years. The profits of the last four years were Rs 2,70,000; Rs 3,00,000; Rs 5,40,000 and Rs 8,10,000 respectively.
(b) His share in the profits of the firm till the date of his death, calculated on the basis of the average profits of the last four years.
(c) Interest @12% per annum on the credit balance, if any, in his Capital account.
(d) Interest on his loan @12% per annum.
Prepare Agarwal's Capital Account to be presented to his executors.
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उत्तर
| Agarwal’s Capital Account | |||
| Dr. | Cr. | ||
| Particulars | Rs | Particulars | Rs |
|
To Balance b/d To Executor A/c
|
39,000 4,12,560
|
By Joshi’s Capital A/c By Pandey’s Capital A/c By Profit and Loss Suspense A/c By Agarwal’s Loan A/c By Interest on Agarwal’s Loan |
1,44,000 1,44,000 72,000 84,000 7,560 |
| 4,51,560 | 4,51,560 | ||
Working Notes:
WN 1 Calculation of Interest on Agarwal’s Loan
Interest on Loan = `84000xx12/100xx9/12 = 7560`
WN2 Calculation of Agarwal’s share in Profits
Average Profit = `(2,70,000 + 3,00,000 + 5,40,000 + 8,10,000)/4 = 4,80,000`
Share of Agarwal in profits = `4,80,000 xx 1/5 xx 9/12 = 72000`
WN3 Adjustment of Goodwill
Average Profit = 4,80,000
Goodwill of the firm = Average Profit x Number of year’s purchase
= 4, 80,000 x 3 = 14,40,000
Agarwal's Share of Goodwill = `1440000 xx 1/5 = 144000`
Joshi will pay = `288000 xx 1/2 = 144000`
Pandey will pay =`288000 xx 1/2 = 144000`
Note: Due to lack of information, the gaining ratio of Joshi and Pandey is same as their new ratio i.e. 2:2 or 1:1.
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संबंधित प्रश्न
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State 'True' or 'False'
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State 'True' or 'False'
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State 'True' or 'False'
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Explain how will you deal with goodwill when new partner is not in a position to bring his share of goodwill in cash ?
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(a) When the amount of goodwill is retained in the business.
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(c) When 50% of the amount of goodwill is withdrawn.
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Sooraj is unable to bring his share of goodwill. Pass the necessary Journal entries on admission of Sooraj, if:
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A and B are partners sharing profits and losses in the ratio of 2 : 1. They take C as a partner for 1/5th share. Goodwill Account appears in the books at ₹ 15,000. For the purpose of C's admission, goodwill of the firm is valued at ₹ 15,000. C is to pay proportionate amount as premium for goodwill which he pays to A and B privately. Pass necessary entries.
Keith, Bina, and Veena were partners in firm sharing profits and losses equally. Their balance sheet as on 31-3-2019 was as follows:
|
Balance Sheet of Keith, Bina, and Veena as on 31-3-2019 |
||||
| Liabilities |
Amount (₹) |
Amount (₹) |
Assets | Amount (₹) |
| Capitals: |
|
3,25,000 |
Plant and Machinery | 2,40,000 |
| Keith | 1,50,000 | Stock | 60,000 | |
| Bina | 1,00,000 | Sundry debtors | 35,000 | |
| Veena |
75,000 |
Cash at bank | 50,000 | |
| General Reserve |
|
30,000 |
||
| Sundry creditors |
|
30,000 |
||
| 3,85,000 | 3,85,000 | |||
Veena died on 30th June 2019. According to the partnership deed, the executors of the deceased partner were entitled to :
- Balance in the capital account
- Salary till the date of death @ ₹ 25,000 per annum.
- Share of goodwill calculated on the basis of twice the average profits of the past three years.
- Share of profit from the closure of the last accounting year till the date of death on the basis of the average of three completed years profits before death.
- Profits for 2016-17, 2017-18 and 2018-19 were ₹ 1,20,000, ₹ 90,000 and ₹ 1,50,000 respectively.
Veena withdrew ₹ 15,000 on 1st June 2019 for paying her daughter’s school fees.
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State True or False with reason.
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What is the super profit method of calculation of goodwill?
Goodwill given in the old balance sheet will be:
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Analyse the case given below and answer the question that follow:
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Govind, Hari and Pratap are partners. On the retirement of Govind, the goodwill already appears on the Balance Sheet at ₹24,000. The goodwill will be written off ______
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Fill in the blank.
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Calculate goodwill of a firm on the basis of three years purchases of the Weighted Average Profits of the last four years. The profits of the last four years were:
| Years (ending 31st march) | 2020 | 2021 | 2022 | 2023 |
| Amount | 28,000 | 27,000 | 46,900 | 53,810 |
- On 1st April, 2020 a major plant repair was undertaken for ₹ 10,000 which was charged to revenue. The said sum is to be capitalized for goodwill calculation subject to adjustment of depreciation of 10% on reducing balance method.
- For the purpose of calculating Goodwill the company decided that the years ending 31.03.2020 and 31.03.2021 be weighted as 1 each (being COVID affected) and for year ending 31.03.2022 and 31.03.2023 weights be taken as 2 and 3 respectively.
Find out super profit, if capital employed is ₹ 4,00,000, normal rate of return is 12% and average profit is ₹ 60,000.
______ means profit which is earned over and above the normal profit.
