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What are the factors affecting goodwill?
Explain various methods
of valuation of goodwill.
Meaning of Undervalued and Overvalued (in case of an asset) and its treatment. Also are liabilities undervalued, overvalued too?
what is the treatment for investment fluctuation fund in partnership
expenses on revaluation amounted to 2100 is paid by A.. this is a loss and hence debited to revaluation account but why is this a loss?
what is aims and objectives of admission of partners
what are the provision of as-26 for the treatment of goodwill at the time of admission of a new partner ?
According to a question,A and B are partners sharing profits in the proportion of 3:2. Their Balance Sheet as at 31st March, 2012 was as follows:
Liabilities indlude Sundry Creditors-Rs.63000,Outstanding Salaries-Rs.4000,General Reserve-Rs.10000,Capital of A and B are Rs. 50000 and Rs.30000 respectively.
Assets include Cash at Bank-Rs.5000,Sundry Debtors -Rs.30000 less Provision=Rs.1000,,Stock-Rs.40000,Trade Marks-Rs.8000,Building-Rs.75000.
They agree to admit C as a new partner on the following terms:
(1). C will be given 2/9th share of profit and he will bring Rs.50000 for his share of capital and goodwill.
(2). Goodwill of the firm will be calculated at 2.5 yrs purchase of the average super profits of last 4 yrs.Profits of the last 4 yrs. are Rs.40000,Rs,40000,Rs.55000 and Rs.65000 respectively.Normal profits that can be earned with the capital employed are Rs.14000.
(3). Half the amount of goodwill is withdrawn by old partners.
(4). 15% of the general reserve is to remain as a provision against doubtful debts.
(5). Outstanding salaries be increased to Rs.6000,Stock is to be reduced by 20% and buildings be increased by 20%.Trade Marks be written off by 50%.
(6). New profit sharing ratio of partners will be 4:3:2 and the capital accounts of A and B will be adjusted on the basis of C'S capital by bringing in or withdrawing cash,as the case may be.
Prepare necessary accounts and the opening balance sheet the firm.
Please can I get the solution.
Why are assets and liabilities revalued at the time of admission of a partner? By revaluing the assets and liabilities dont we violate Going concern and Cost concept??
sir my book is of B.B. dam new course of AHSEC PART A THEORY ND PRACTICE OF ACCOUNTANCY in this book chapter 3 i cant find exercise question of pg no.3.149 plz sir tell me where i got the answers?
A sum on partnership with journal , ledger, trial balance, trading, profit & loss, profit & loss appropriation ,balance sheet & partner's capital account.
why is revaluation a/c prepared when we make the balance sheet as per all the adjustments
of the last year
admission of a partner question with solution?
Creditors were written back Rs. 5000.Which side of the Revaluation a/c will this adjustment fall in?
Creditors were written back Rs. 5000.
Which side of the Revaluation a/c will this adjustment fall in?
x,y,z are partners in the ratio of 3:2:1. W is admitted for 1/6th share in profits . Z would retain his original share. Find out the new profit sharing ratio.
........please explain me this question as best as you can
A and B are partners sharing profits and losses in the ratio of 2:1 A is a nonworking partner and has contributed rs 2400000 as his capital B is a working partner the partnership deed provides for interest on capital @ 10 % p.a. and salary of rs 15000 pm to the working partner the net profit of the year was 140000 before providing interest and salary you are required to show the distribution of the profits
what does exactly 'number of year purchase' mean in the valuation of goodwill?
amalgamation of partnership firms means?
A and B are partners sharing profits and losses in the ratio 2:1. C and D are admitted and new proftis sharing ratio becomes 4:2:3:1. Goodwill is valued at Rs 20,000. D brings requird goodwill and Rs 5000 cash for capital. C brings in Rs 5000 cash and stock worth Rs 6000 as his capital in addition to the required amount of goodwill in cash.
Show the necessary journal entries in the books of the firm
give any two reasons for the prepartion of revaluation account on the admission of a new parter.
is there any difference between average profit or average super profit
A provision for doubtful debts was to be made equal to 5% of the debtors??? what does it mean how to treat this??balance sheet-asset side- debtors-30,000.
pls give solutions of dk goel accountancy ch 4 fast
M AND S are partners sharing profits and losses in the ratio 2:1. Their balance sheet was as follows :
Liabilities = Creditors - 44000, Capital accounts : M- 30000 and S- 20000 TOTAL = 94000
Assets = Cashat bank- 17000, debtors - 15000, Bills recievables- 4000 Stock - 25000, kland and building - 30000, furniture and fixtures- 3000, TOTAL= 94000
R admitted on 1st april 2012 on the following terms :
(a). That he brings in Rs.15000 as his capital for 1/4th share and pays Rs.6000 for goodwill , half of which is withdrawn by M and S.
(b). There is likely to be a claim against the firm for damages for which a provision to the extent of Rs 1500 is to be made.
©. A bill for Rs.300 for electric charges has been omitted to be accounted. It should , therefore. Now be provided for.
(d). Stock is reduced to Rs.23000 and furniture and fixtures by Rs.1000
( e) . 5% reserve for bad and doubtful debts to be created.
(f). value of land and building to be appreciated by 20%/
(g). Included in the creditors is an item of Rs.1200 which is not paid and therefore has to be written back.
(h). That the profit sharing ratio of the old firm will not change.
Show jouranls, revaluation account, partners capital account. And balance sheet of new firm stating the proportion in which the partners will share profits and losses in future.
how to treat bank overdraft?
What is the meaning of Undervalued and Overvalued?????
A nd B are partners sharing profits and losses in the ratio 3:1. On 1st april 2012 their balance sheet was as follows."
Liabilities = Sundry creditors- 70000; Capital a/cs- A - 200000, B- 80000; TOTAL= 350000.
Assets= Goodwill- 20000; plant- 100000; patents- 10000; stock- 142000,; Sundry debtors- 50000; cash ta bank- 8000; profit and loss account- 20000. Total- 350000.
They admit C into partnership with 1/6th share in profits on the following terms:
(a). Goodwill is to be valued at one’s year purchase of the five years’ average profit which were Rs.20000; Rs.30000 ; Rs.30000; rs.50000 and Rs.50000.
(b). C agrees to contribute 1/4th of the combined capital of A and B in the new firm.
( c ). Plant is to be written down to Rs.90000 and patents written up to Rs.12000.
(d). A reserve for bad and doubtful debts is to be created @2%p.a. of the debtors.
( e). A liability of Rs.5000 included in sundry creditors is not likely to arise.
Give journal entries, revaluation account, partners capital account, cash account and balance sheet after the admission of C.
lease give me solution of 85 question in dr.s.c sharma as i am not getting goodwill.
stock is undervalued by 10% the amount of stock is 18000.
How come in revaluation its written 2000 ?
K,L,M partners sharing in the ratio 3:2:1. They admit N for 1/6 share. It is agreed that M would retain his orignal share.Calculate the mew ratios and sacrificing ratios.
How to treat the following adjustment.
-Provision for bad debt found in excess by 400 Rs.
solution ts grewal grade 12 admission of partner q95 sollution
A and B are partners sharing profits and losses in the ratio 2:1. They admit C, their Manager into partnership who is to get 1/3rd share in the bussiness. C brings in Rs.10000 for his capital and Rs.3000 for 1/3rd share of goodwill. A,B and C agree to share the future profits equally. The amount of goodwill is withdrawn from the business. Make journal entries on C's admission.
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