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प्रश्न
On 1st April, 2020, Anish started a business with a capital of ₹ 3,00,000.
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.
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उत्तर
i.
Formula to calculate goodwill by Average Profit method: `"Average Profit" = ("Total profits of given years")/("Total number of years")`
Goodwill = Average profit × Number of years purchase
ii.
Calculation of value of self-generated goodwill:
`"Average Profit" = ("Loss of (2020−21) + Profit of (2021−22) + Profit of (2022−23)")/3`
`= ((20,000) + 34,000 + 46,000)/3`
`= (80,000 - 20,000)/3`
`= (60,000)/3`
= ₹ 20,000
Average profit = ₹ 20,000
No. of years purchase = 2
Goodwill = 20,000 × 2
= ₹ 40,000
iii.
Calculation of Danish’s Capital contribution
Danish’s share of goodwill = `40,000xx1/4` = ₹ 10,000
Adjusted Capital of Anish on 1st April, 2023:
| Particulars | Amount (₹) |
| Capital as on 1st April 2020 | 3,00,000 |
| Add: Total Profit of last 3 Years | 60,000 |
| Add: Goodwill Compensation from Danish | 10,000 |
| 3,70,000 | |
| Less: Drawings of last 3 Years | 30,000 |
| 3,40,000 |
Danish’s capital contribution = `(3,40,000)/4`
= ₹ 85,000
संबंधित 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.
Aparna, Manisha and Sonia are partners sharing profits in the ratio of 3:2:1. Manisha retires and goodwill of the firm is valued at Rs 1,80,000. Aparna and Sonia decided to share future in the ratio of 3:2. Pass necessary Journal entries.
Anu and Bhagwan were partners in a firm sharing profits in the ratio of 3 : 1. Goodwill appeared in the books at ₹ 4,40,000. Raja was admitted to the partnership. The new profit-sharing ratio among Anu, Bhagwan and Raja was 2 : 2 : 1. Raja brought ₹ 1,00,000 for his capital and necessary cash for his goodwill premium. Goodwill of the firm was valued at ₹ 2,50,000. Record necessary Journal entries in the books of the firm for the above transactions.
Vinay and Naman are partners sharing profits in the ratio of 4 : 1. Their capitals were ₹ 90,000 and ₹ 70,000 respectively. They admitted Prateek for 1/3 share in the profits. Prateek brought ₹ 1,00,000 as his capital. Calculate the value of firm's goodwill.
What is the super profit method of calculation of goodwill?
Value of reputation of the firm is:
When there is no Goodwill Account in the books and goodwill is raised, ____________ account will be debited.
Which method is followed when the new partner does not bring in his share of goodwill in cash.
Harry, Pammy and Sunny are partners sharing profits in the ratio of 3:2:1. Goodwill is appearing in the books at a value of Rs. 60, 000. What is the journal entry for the following case?
______ = Average profit x No. of years of purchase
