Question

Q8. Average capital employed in the business by the firm is ?2,00,000. The average Net Profits expected in the future by firm are ?36,000 per year. The rate of return expected from capital invested in this class of business is 10%. The remuneration of the partners is estimated to be ?6,000 per annum. Find the value of Goodwill on the basis of two years' purchase of Super Profits. 4 Q9. V and S are partners in a firm sharing profits and losses in the ratio of 5:3. They admitted G as a new partner for 1/5th share of profits. G brought Rs. 20,000 as capital and Rs. 4,000 as his share of goodwill premium. Give necessary journal entries. (i) when the amount of goodwill premium was retained in the business, and (ii) when the amount of goodwill premium was fully withdrawn. 4 Q10. A, B and C are partners sharing profits and losses in the ratio of 1: 2: 3. They decide to share future profits in the ratio of 3: 2: 1. They also decided to record the effect of the following without affecting their book values. General reserve ?90000 Profit and loss A/c(Cr.) ?30000 Advertisement Suspense (Dr.) ?60000 Pass single adjusting entry. 4

          Q8. Average capital employed in the business by the firm is ?2,00,000. The
average Net Profits expected in the future by firm are ?36,000 per year. The rate
of return expected from capital invested in this class of business is 10%. The
remuneration of the partners is estimated to be ?6,000 per annum. Find the
value of Goodwill on the basis of two years' purchase of Super Profits.
4
Q9. V and S are partners in a firm sharing profits and losses in the ratio of 5:3.
They admitted G as a new partner for 1/5th share of profits. G brought Rs. 20,000
as capital and Rs. 4,000 as his share of goodwill premium. Give necessary journal
entries.
(i) when the amount of goodwill premium was retained in the business, and
(ii) when the amount of goodwill premium was fully withdrawn.
4
Q10. A, B and C are partners sharing profits and losses in the ratio of 1: 2: 3. They
decide to share future profits in the ratio of 3: 2: 1. They also decided to record
the effect of the following without affecting their book values.
General reserve ?90000
Profit and loss A/c(Cr.) ?30000
Advertisement Suspense (Dr.) ?60000
Pass single adjusting entry.
4

Q8. Average capital employed in the business by the firm is ?2,00,000. The
average Net Profits expected in the future by firm are ?36,000 per year. The rate
of return expected from capital invested in this class of business is 10%. The
remuneration of the partners is estimated to be ?6,000 per annum. Find the
value of Goodwill on the basis of two years' purchase of Super Profits.
4
Q9. V and S are partners in a firm sharing profits and losses in the ratio of 5:3.
They admitted G as a new partner for 1/5th share of profits. G brought Rs. 20,000
as capital and Rs. 4,000 as his share of goodwill premium. Give necessary journal
entries.
(i) when the amount of goodwill premium was retained in the business, and
(ii) when the amount of goodwill premium was fully withdrawn.
4
Q10. A, B and C are partners sharing profits and losses in the ratio of 1: 2: 3. They
decide to share future profits in the ratio of 3: 2: 1. They also decided to record
the effect of the following without affecting their book values.
General reserve ?90000
Profit and loss A/c(Cr.) ?30000
Advertisement Suspense (Dr.) ?60000
Pass single adjusting entry.
4

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