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Goodwill is to be valued at 3 years' purchase of average profits of 3 years upto the date of valuation after deducting interest @ 6% on capital employed and a fair remuneration to each partner. The profits are assumed to be earned evenly throughout the year. Fair remuneration for the work done by each partner is 18,000 per annum and total capital employed is? 1,80,000. The trading profits (before charging interest on Capital employed and remuneration of partners) were 2013 * 65,000 2014 75,000; 201580000 : 2016 62,000. Calculate value of goodwill of a firm as on 30.6.2016. The firm is having three partners

Posted by Nikita Kamboj 5 years, 4 months ago

CBSE > Class 12 > Accountancy

1 answers

Hetal Surana 5 years, 4 months ago

The value of goodwill is 1,95,250 As Avg. Profit =(75,000+80,000+62000)÷3×3 =217000 - this is g/w till 31st march 2016 217000×3÷12=54250 217000+54250=271250 - this is g/w till 30.6.16 without adjustment 180000×6%=10800 - interest on cap. Remuneration of the 3 partners till 30.6.16 = 18000+(18000×3÷12) =67500 G/w after adjustment =271250-10800-67500 =195250

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ANSWER

Jain ltd invited applications for issuing 112000 euity share of rs10 each at par. The amount per share was payable as follow on application rs1,on allotment rs 2,on 1st call rs3 nd 2nd final call rs4. Applications for 100000 shares were received. Shares were fully alloted to all the applicants. Ramesh failed to pay his allotment money which was rs2000.his shares.his shares were forfeited immediately. Suresh did not pay the first call on 500 shares applied by him.his shares were forfeited after the first call. The forfeited shares of ramesh and suresh were re-issued at rs9 per share fully paid up. Afterwards the second and final call was made and was duely received. Pass the journal entries for tge above transaction in the books of jain ltd.

Posted by Gurarpan Maan 5 years, 4 months ago

CBSE > Class 12 > Accountancy

0 answers

ANSWER

Treatment of legacy

Posted by Sonal Chauhan 5 years, 4 months ago

CBSE > Class 12 > Accountancy

1 answers

Gaurav Seth 5 years, 4 months ago

Legacy : Legacy represents the amount or property received by organization under a will on death of the contributors. In other words we can say that ligacies are the donations made by a person in his will, so their donation are called legacy.

(i) Legacies received for a specific purpose must be capitalized in the name of concerned fund for which it is received.

(ii) Legacies received not for any sprcific fund/general may be added to the capital fund.

Example :
Mr. Shyam lal writes his will that his property will be transferred (after his death) to a Not-for-profit Organization. After death of Mr. Shyam lal, his property will be treated as capital receipt by concerned Not-for-profit Organization under the head legacy.

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ANSWER

Amar and bahadur are partners in a firm sharing in the ratio of 3:2 . They admitted Mary as a new partner for 1/4 share . The new profit ratio between amer and bahadur will be 2:1 . Calculate their sacrificng ratio

Posted by Sameemullah Sameemullah 5 years, 4 months ago

CBSE > Class 12 > Accountancy

1 answers

Hetal Surana 5 years, 4 months ago

Amar = 3/5-2/3=-1/15. Bahadur = 2/5-1/3=1/15

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ANSWER

17.Asha and Vipasha are equal partners with fixed capitals of Rs. 5,00,000 and Rs. 2,00,000 respectively. After closing the accounts for the year ending 31st March, 2019 it was discovered that interest on capitals was provided @ 6% instead of 5% p.a. In adjusting entry :

Posted by Rid Jain 4 years, 2 months ago

CBSE > Class 12 > Accountancy

1 answers

Jagriti Vishwakarma 1 year, 7 months ago

Asha 's current a/c Dr. 1500 To vipasha 's current a/c 1500

29Thank You

ANSWER

A partner introduced additional capital of rupees 30000 and advanced a loan of rupees 40000 to the firm at the beginning of the year .partner will receive year's interest

Posted by Sakshi Jha 5 years, 4 months ago

CBSE > Class 12 > Accountancy

1 answers

Palak Agrawal 4 years, 4 months ago

2400

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ANSWER

Glaxo club, balance sheet as at 1st April, 2019 was asl under. Liabilities amount Capital Fund 2,00,000 Tournament Fund 60,000 subscriptions in advance 6,000 Salaries Unpaid 11,000 total 2,77,000 Assets amount sports Equipments 50,000 Grounds 1,20,000 Billiardes Tables 60,000 subscriptions Outstanding 8,000 Cash and bank balance 39,000 total 2,77,000. Receipts Amount To Opening balance 39,000 To subscriptions 1,81,000 To sale of old materials ,1,500 To sale of sports equipments (Book value amount 10,000) 6,000 To Entrance fees 2,000 To Life membership fees 50,000 To Donations for Tournament 20,000 Total 2,99,000 Payment amount By Wages and salaries 60,000 By Upkeep of grounds 10,000 By Stationary 15,000 By Audit fee 2,000 By Expenses on Tournament 65,000 By Sports Equipments 20,000 By 5% Investments 40,000 (On 1st October, 2019) By Cash and bank balances 87,500 Subscriptions still to be received are amount 5,500 but subscriptions already received include amount 4,000 for next year. Salaries still unpaid are amount 6,000. Sports Equipments are now valued at amount 45,000. Prepare income and Expenditure Account and the Balance Sheet, after charging 10% depreciation on Billiards Tables.

Posted by Ali Hasan 5 years, 4 months ago

CBSE > Class 12 > Accountancy

0 answers

ANSWER

On March 31st ,2020 the balances in the capital accounts of Alka, Hardik and Ramneek after making adjustment for profits and drawings were rupees 9,00,000;rupees 5,00,000 and rupees 3,00,000 respectively.Subsequently it was discovered that the interest on capital and drawings has been omitted .The profit for the year ended 31st March 2020 was rupees 1,80,000.During the year Alka and Ramneek each withdrew a sum of rupees 40000.Hardik withdrew a total of rupees 60,000 in equal installments in the middle of each quarter. Interest on drawing was to be charged @ 5% p.a. and interest on capital was to be allowed @10% per annum. The profit sharing ratio was 3:1:1. Showing your working clearly ,pass the necessary rectifying entry.

Posted by Parminder Kaur 4 years, 7 months ago

CBSE > Class 12 > Accountancy

1 answers

Raunak Sharma 4 years, 7 months ago

Particulars Alka Hardik Ramneek Total Interest on Capital @ 10% p.a. 90,000 50,000 30,000 1,70,000 IOD 1,000 1,000 750 2,750 Remaining Profit (1,80,000 + 2,750 – 1,70,000) (3:1:1) 7,650 2,550 2,550 12,750 Total Amount Paid (Cr.) 96,650 51,550 31,800 1,80,000 Division of firm’s profit of Rs. 1,80,000 in the ratio 3:1:1 (Dr.) 1,08,000 36,000 36,000 1,80,000 11,350 (Dr.) 15,550 (Cr.) 4,200 (Dr.) - Working Note:- IOD of Alka = 40,000 × 5% × 6/12 = 1,000 IOD of Hardik = 40,000 × 5% × 6/12 = 1,000 IOD of Ramneek = 60,000 × 5% × 3/12 = 750

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ANSWER

Hari and Ravi are partners in a firm sharing profits in the ratio of 5:3. On March 31st ,2020 their balance sheet showed a general reserve of rupees 80,000. On 1st April ,2020 they decided to admit Mohan as a new partner. The new profit sharing ratio between Hari, Ravi and Mohan will be 5:3:2. Record the necessary journal entry in the books of the firm in the following cases 1. when they want to distribute the general reserve . 2. when they do not want to distribute general reserve.

Posted by Parminder Kaur 5 years, 4 months ago

CBSE > Class 12 > Accountancy

0 answers

ANSWER

X and Y are in partnership sharing profit and losses in the ratio of 3:2.Their balance sheet as on 31st March,2012 was as under: Liabilities Rs. Assets Rs. Creditors General Reserve Capital Accounts: X Y Current Accounts: X Y 15,000 12,000 60,000 30,000 10,000 2,000 Cash Debtors 20,000 Less:provision 800 Patents Investment Fixed assets Goodwill 5,000 19,200 14,800 8,000 72,000 10,000 1,29,000 1,29,000 They admit Z on the following terms:- a. A provision of 5% is to be created on debtors. b. Accrued income of Rs.1,500 does not appear in the books and Rs.5,000 are outstanding for salaries. c. Present market value of investment is Rs.6,000. X takes over the investments at this value. d. New profit sharing ratio of partners will be 4:3:2.Z will bring in Rs.20,000 ashiscapital. e. Z is to pay in cash an amount equal to his share in firm’s goodwill valued at twice the average profits of the last 3 years which were Rs.30,000; Rs.26,000 and Rs.25,000 respectively. f. Half the amount of goodwill is withdrawn by old partners. You are required to pass journal entries, prepare revaluation A/c, capital A/cs, current A/cs and the balancesheet.

Posted by Sandeep Kaur Grewal 5 years, 4 months ago

CBSE > Class 12 > Accountancy

0 answers

ANSWER

Vinod Limited purchased Machinery worth Rs.4,00,000 from KK Limited on 1.1.2013. Rs.1,00,000 was paid immediately and the balance was paid by issue of Rs.2,80,000, 12% Debentures in Vinod Limited. Pass necessary journal entries to record these transactions in the books of Vinod Limited.

Posted by Ujjwal Kumar 5 years, 4 months ago

CBSE > Class 12 > Accountancy

0 answers

ANSWER

Jain Ltd. invited applications for issuing 1,12,000 equity shares

Posted by K Gautam 5 years, 4 months ago

CBSE > Class 12 > Accountancy

1 answers

Abhishek Kumar 5 years, 4 months ago

answer

4Thank You

ANSWER

Unaccounted accrued income commission of 2400to be provided for. A debtor whose 4800 were written off as bad debts paid 50% in settlement

Posted by Pirate X 5 years, 5 months ago

CBSE > Class 12 > Accountancy

0 answers

ANSWER

Ram and Shyam were partners in a firm sharing profits in the ratio of 3 : 5. Their fixed capitals were : Ram Rs.5,00,000 and Shyam Rs. 9,00,000. After the accounts of the year 2020 had been closed, it was found that interest on capital @ 10% per annum as provided in the partnership agreement has not been credited to the capital Accounts of the partners. Pass a necessary entry to rectify the error.

Posted by Hari Priya 5 years, 5 months ago

CBSE > Class 12 > Accountancy

1 answers

Harwinder Bhall 4 years, 4 months ago

ram and shyam were partner in a firm sharing profits in the ratio of 3:5 .their fixed capital ......

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ANSWER

From the following information related ta a health club , calculate amount of subscription received during the year ended 31st March ,2018. Income from subscription for the year ended 31st march , 2018 :- ₹120000 Subscription received in advance during the year 31st March 2018 :- ₹10000 Subscription outstanding on 1st April ,2017 :-₹27000 Subscription outstanding on 31st March,2018 :-₹22000 Subscription received in advance on 1st April,2017 :-₹8000

Posted by Aman Rouf Haque 5 years, 5 months ago

CBSE > Class 12 > Accountancy

0 answers

ANSWER

THÊツMÃMBÁ

Posted by Siddhant Kapoor 5 years, 5 months ago

CBSE > Class 12 > Accountancy

0 answers

ANSWER

A, B and C were partners in a firm sharing profits in the ratio of 6 : 5 : 4. Their capitals were A – ₹ 1,00,000; B – ₹ 80,000 and C – ₹ 60,000 respectively. On 1st April, 2009, A retired from the firm and the new profit sharing ratio between B and C was decided as 1 : 4. On A’s retirement, the goodwill of the firm was valued at ₹ 1,80,000. Showing your calculations clearly, pass the necessary journal entry for the treatment of goodwill on A’s retirement.Please clear my doubt how to calculate ratio

Posted by Simran Morya 5 years, 5 months ago

CBSE > Class 12 > Accountancy

0 answers

ANSWER

What is the meaning of partnerships

Posted by Ashish Kumar Arya Arya 5 years, 5 months ago

CBSE > Class 12 > Accountancy

3 answers

Ashish Kumar Arya Arya 5 years, 3 months ago

The meaning of partnerships is there are two or more partners are keep one business start in profits and losses are distribue . There are two or more than 50 partners are start the business

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Harshit Gupta 5 years, 5 months ago

Partnership is a group of two or more people who associates to work together in a firm

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Meghna Thapar 5 years, 5 months ago

The definition of a partnership is a relationship between two or more individuals. An example of a partnership is two businesses working together. An example of a partnership is a marriage. A partnership is a form of business where two or more people share ownership, as well as the responsibility for managing the company and the income or losses the business generates.

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ANSWER

adil,bhavya,cris are partner

Posted by Shreyash Tripathi 2 years ago

CBSE > Class 12 > Accountancy

1 answers

Bollywood Songs 4 years, 5 months ago

adul,

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ANSWER

A b c are partner in a firm. Net profit of the firm for the year ended 31 March 2020 is 30000, which has been duly distributed among the partner in their agreed ratio of 3:1:1. It is noticed on 10th April 2020 that the undermentioned transaction

Posted by Rahul Kumar 5 years, 5 months ago

CBSE > Class 12 > Accountancy

0 answers

ANSWER

goodwill divide in old ratio or new

Posted by Akhil Jha 5 years, 5 months ago

CBSE > Class 12 > Accountancy

2 answers

Harshit Gupta 5 years, 5 months ago

If the goodwill is present in balancesheet then it will be divided in old ratio And if there is goodwill valued in adjustment the it will be divided in gaining and sacrificing ratio

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Simran Morya 5 years, 5 months ago

Goodwill divided by its gaining ratio

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ANSWER

In the absence of partnership Agreement interest on drawing of a partner is changed

Posted by Karishma Chauhan 5 years, 5 months ago

CBSE > Class 12 > Accountancy

5 answers

Harshit Gupta 5 years, 5 months ago

In absence of partnership deed INTREST ON DRAWING WILL NOT BE PROVIDED

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P Patel 5 years, 5 months ago

no interest on drawing will be charged

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Gaurav Seth 5 years, 5 months ago

Interest on drawings: No interest on drawings would be charged from partners.

Interest on Loan : If a partner has provided any Loan to the firm, he would be paid Interest at the rate 6% p.a. This interest on loan is a charge against profits i.e. it is to be allowed even if there are losses to the firm.

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Muskan Nirvan 5 years, 5 months ago

In the absence of partnership deed Interest on drawings will not be charge.

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Karishma Chauhan 5 years, 5 months ago

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ANSWER

Dev withdrawal rupees 10000 on 15th day of every month. Interest on drawing was to be charge@12%p.a. Calculate interest on dev drawing

Posted by Saurabh Yadav 5 years, 5 months ago

CBSE > Class 12 > Accountancy

2 answers

Jagriti Vishwakarma 5 years, 5 months ago

If drawings are made in the middle or at any time during the month : Average period = 11.5 +0.5 /2= 6 months Interest on the whole amount will be calculated for 6 months: Interest= 120000×12/100×6/12=7200

1Thank You

Gaurav Seth 5 years, 5 months ago

Explanation:

when the drawings are are made in the middle or at any time during the month, interest on whole amount will be calculated for 6 months.

Formula :

First we need to calculate the average period:

Average Period =(Time left after first drawing+Time left after last drawing) /2

Average period= months