X and Y are in partnership business sharing profits and losses in the ratio of 2:3.
Their Balance Sheet as at 31st March, 2022 is as follows :
| Liabilities | Amount | Assets | Amount |
| Capital Accounts X |
60,000 | Building | 60,000 |
| Plant | 45,000 | ||
| y | 1,40,000 | Furniture | 23,500 |
| General Reserve | 40,000 | Debtors | 38,400 |
| Creditors | 42,600 | Bills receivable | 12,500 |
| Bills payable | 15,400 | Stock | 42,600 |
| Salary payable | 2,000 | Bank | 78,000 |
| 3,00,000 | 3,00,000 |
On 1st April, 2022 they decided to admit Z into the partnership giving him 1/5th share in, the future profits. He brings in Rs. 1,00,000 as his share of capital. Goodwill was valued at Rs. 1, 20,000 at the time of admission of Z. The partners decided to revalue the assets and liabilities as follows :
(i) Plant 40,000, Stock { 42,000, Furniture 20,000 and Bills Receivable
Rs. 12,000.
(ii) Out of total Debtors, f 2400 is bad and 5% provision is to be provided for bad and doubtful debts.
(iii) Building is to be appreciated by 75%.
(iv) Actual liability towards salary payable is f 1200 only
[2022 December – 15 Marks]
You are required to show the following accounts in the books bf the firm :
(1) Revaluation Account
(2) Partner’s Capital Accounts
(3) Balance sheet of the Firm after Admission of Z
R and S are partners in a firm with a capital of 14,00,000 and 12,00,000 respectively.
During the year ended on 31st March, 2022 firm earned a profit of 6,50,000. Assuming that the normal rate of return is 20%. Calculate the amount of Goodwill of the firm by using
(i) Capitalization method
(ii) Super Profit method, if the goodwill is valued at 6 years purchase of super profits.
[2022 December – 5 Marks]
Mr.X gives the following particulars in respect of business carried on by him:
| Particulars | Amount( ) |
| Capital Invested in business | 9,00,000 |
| Market rate of interest on investment | 8% |
| Rate of risk return on capital invested in business | 3% |
| Remuneration per annum from alternative employment of proprietor if he was not engaged in business |
36,000 |
The business earned profits of Rs.2,40,000, Rs. 2,16,000 and Rs. 3,00,000 in the years 2018, 2019 and 2021 respectively but made a loss of 36,000 in the year 2020.
Compute the value of Goodwill on the basis of 6 years’ purchase of super profits of the business, calculated on the basis of average profit of last four years.
[2022 May – 5 Marks]