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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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| Amount (₹) | 30,000 (Profit) |
40,000 (Profit) |
70,000 (Profit) |
30,000 (Loss) |
50,000 (Profit) |
Find out value of Goodwill.
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During the three years ending 31st March, 2023, the results of his business were:
| Year | (₹) | |
| 2020-21 | Loss | 20,000 |
| 2021-22 | Profit | 34,000 |
| 2022-23 | Profit | 46,000 |
From the year 2020-21 to the year 2022-23, Anish withdrew ₹ 30,000 from the firm for his personal use.
On 1st April, 2023, he admitted Danish into partnership on the following terms:
- Goodwill of the firm to be valued at two years’ purchase of the average profits of the last three years.
- Danish to have a `1/4` share in the future profits.
- Danish’s capital is to be equal to `1/4` of Anish’s capital determined on 1st April, 2023, after the goodwill compensation has been taken into account.
You are required to give:
- The formula to calculate goodwill by the Average Profit Method.
- The value of self-generated goodwill of the firm.
- Danish’s capital contribution.
Choose the components required to calculate goodwill of a firm by capitalisation of average profits method.
P: The normal profits of a similar firm in the industry.
Q: The average profits of the firm.
R: The number of years purchase.
S: The actual capital employed in the business.
Aman and Vinod are partners in a firm. Their Balance Sheet showed:
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On Milin’s admission as a new partner, the assets and liabilities are to be revalued as:
- Unaccounted accrued income of ₹ 10,000 to be provided for.
- Bills Payable of ₹ 10,000 which were recorded, to be discharged at a rebate of 10%.
- Debtors of ₹ 2,000 to be irrecoverable.
- Provision for doubtful debts to be provided @ 2% of the debtors.
What is the net effect of revaluation of assets and liabilities?
