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प्रश्न
Anshul and Parul are partners sharing profits in the ratio of 3 : 2. They admit Payal as partner for 1/4th share in profits on 1st April, 2019. Payal brings ₹ 5,00,000 as capital and her share of goodwill by cheque. It was agreed to value goodwill at three years' purchase of average profit of last four years.
| Profits for the last four years ended 31st March, were | ₹ |
| 2015-16 | 4,00,000 |
| 2016-17 | 5,00,000 |
| 2017-18 | 6,00,000 |
| 2018-19 | 7,00,000 |
Additional Information:
1. Closing Stock for the year ended 31st March, 2018 was overvalued by ₹ 50,000.
2. ₹ 1,00,000 should be charged annually to cover management cost.
Pass necessary Journal entries on Payal's admission.
उत्तर
|
In the books of the Anshul, Parul and Payal Journal |
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|
Date |
Particulars |
|
L.F. |
Debit (₹) |
Credit (₹) |
|
2019 |
|
|
|
|
|
|
April 01 |
Bank A/c |
Dr. |
|
8,37,500 |
|
|
|
To Payal’s Capital A/c |
|
|
|
5,00,000 |
|
|
To Premium for Goodwill A/c |
|
|
|
3,37,500 |
|
|
(Being capital and goodwill paid by the new partner) |
|
|
|
|
|
|
|
|
|
|
|
|
2019 |
Premium for Goodwill A/c |
Dr. |
|
3,37,500 |
|
|
April 01 |
To Anshul’s Capital A/c `(3,37,500 × 3/5)` |
|
|
|
2,02,500 |
|
|
To Parul’s Capital A/c `(3,37,500 × 2/5)` |
|
|
|
1,35,000 |
| (Being premium for goodwill adjusted in sacrificing ratio) |
|
|
|
|
|
Working Notes:
|
Particulars |
Year |
31st Mar., |
31st Mar., |
31st Mar., |
31st Mar., |
| Profits for the year |
4,00,000 |
5,00,000 |
6,00,000 |
7,00,000 |
|
| Less: Overvaluation of Closing Stock |
|
|
50,000 |
|
|
| Add: Overvaluation of Opening Stock |
|
|
|
50,000 |
|
| Less: Annual Charge for Management Cost |
1,00,000 |
1,00,000 |
1,00,000 |
1,00,000 |
|
| Normal Profits |
3,00,000 |
4,00,000 |
4,50,000 |
6,50,000 |
|
Average Profits = ₹4,50,000
Goodwill = Average Profits × No. of years of Purchase
= ₹ (4,50,000 ×3) = ₹ 13,50,000
APPEARS IN
संबंधित प्रश्न
Identify various matters that need adjustments at the time of admission of a new partner.
Do you advise that assets and liabilities must be revalued at the time of admission of a partner? If so, why? Also describe how is this treated in the book of account?
Mohan Lal and Sohan Lal were partners in a firm sharing profits and losses in 3:2 ratio. They admitted Ram Lal for 1/4 share on 1.1.2013. It was agreed that goodwill of the firm will be valued at 3 years purchase of the average profits of last 4 years which were Rs. 50,000 for 2013, Rs. 60,000 for 2014, Rs. 90,000 for 2015 and Rs. 70,000 for 2016. Ram Lal did not bring his share of goodwill premium in cash. Record the necessary journal entries in the books of the firm on Ram Lal’s admission when:
a) Goodwill already appears in the books at Rs. 2,02,500.
b) Goodwill appears in the books at Rs. 2,500.
c) Goodwill appears in the books at Rs. 2,05,000.
Azad and Babli are partners in a firm sharing profits and losses in the ratio of 2:1. Chintan is admitted into the firm with 1/4 share in profits. Chintan will bring in Rs 30,000 as his capital and the capitals of Azad and Babli are to be adjusted in the profit sharing ratio. The Balance Sheet of Azad and Babli as on March 31, 2016 (before Chintan’s admission) was as follows:
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Balance Sheet of A and B as on 31.03.2016 |
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|
Liabilites |
Amount (Rs) |
Assets |
Amount (Rs) |
||
|
Creditors |
|
8,000 |
Cash in hand |
2,000 |
|
|
Bills payable |
|
4,000 |
Cash at bank |
10,000 |
|
|
General reserve |
|
6,000 |
Sundry debtors |
8,000 |
|
|
Capital accounts: |
|
|
Stock |
10,000 |
|
|
|
Azad |
50,000 |
|
Funiture |
5,000 |
|
|
Babli |
32,000 |
82,000 |
Machinery |
25,000 |
|
|
|
|
Buildings |
40,000 |
|
|
|
|
1,00,000 |
|
1,00,000 |
|
It was agreed that
i) Chintan will bring in Rs 12,000 as his share of goodwill premium.
ii) Buildings were valued at Rs 45,000 and Machinery at Rs 23,000.
iii) A provision for doubtful debts is to be created @ 6% on debtors.
iv) The capital accounts of Azad and Babli are to be adjusted by opening current accounts.
Record necessary journal entries, show necessary ledger accounts and prepare the Balance Sheet after admission.
E and F were partners in a firm sharing profits in the ratio of 3 : 1. They admitted G as a new partner on 1st April, 2019 for 1/3rd share. It was decided that E, F and G will share future profits equally. G brought ₹ 50,000 in cash and machinery valued at ₹ 70,000 as premium for goodwill.
Pass necessary Journal entries in the books of the firm.
Bhuwan and Shivam were partners in a firm sharing profits in the ratio of 3 : 2. Their capitals were ₹ 50,000 and ₹ 75,000 respectively. They admitted Atul on 1st April, 2018 as a new partner for 1/4th share in future profits. Atul brought ₹ 75,000 as his capital. Calculate the value of goodwill of the firm and record necessary Journal entries for the above transactions on Atul's admission.
A, B, C and D are in partnership sharing profits and losses in the ratio of 36 : 24 : 20 : 20 respectively. E joins the partnership for 20% share and A, B, C and D in future would share profits among themselves as 3/10 : 4/10 : 2/10 : 1/10. Calculate new profit-sharing ratio after E's admission.
A and B are in partnership sharing profits and losses as 3 : 2. C is admitted for 1/4th share. Afterwards D enters for 20 paise in the rupee. Compute profit-sharing ratio of A, B, C and D after D's admission.
Why a new partner is admitted to the firm?
A and B are partners in firm sharing profits in the ratio of 5 : 3. They admit C as a new partner for `1/7` share. New Ratio will be 4 : 2 : 1. Sacrificing ratio will be:
If a new partner is admitted during the year the profits for the year should be divided between __________ period on an agreed basis.
Which of the following account is prepared at the time of admission of a new partner?
New partner can be admitted in the firm with the consent of ____________ old partners.
X and Y are partners sharing profit in the ratio of 3 : 2. Z was admitted with `1/4` share in profits which he acquires equally from X and Y. The new ratio will be:
At the time of admission of new partner Vasu, old partners Paresh and Prabhav had debtors of ₹ 6,20,000 and a provision for doubtful debts of ₹ 20,000 in their books. As per terms of admission, assets were revalued, and it was found that debtors worth ₹ 15,000 had turned bad and hence should be written off. Which journal entry reflects the correct accounting treatment of the above situation?
Complete the following sentence.
______ of a partner is a mode of reconstituting the firm.
When a new partner enters into the partnership firm, old partners ______ some part of their old share.
Pick the odd one out:
The balance amount of Workmen Compensation Reserve, after meeting actual liability, at the time of admission of a new partner, will be transferred to:
