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प्रश्न
On the death of a partner, his share in the profits of the firm till the date of his death is transferred to the:
(1) Debit of Profit and Loss Account.
(2) A credit of Profit and Loss Account.
(3) Debit of Profit and Loss Suspense Account
(4) A credit of Profit and Loss Suspense Account
उत्तर
Debit of Profit and Loss Suspense Account
On the death of a partner, the share of the partner in the profits of the firm till the date of his death is transferred to the debit of Profit and Loss Suspense Account
APPEARS IN
संबंधित प्रश्न
Virad, Vishad and Roma were partners sharing profits in the ratio of 5 : 3: 2 respectively. On March 31, 2013, their Balance Sheet as under.
| Liabilities | Amount(Rs.) | Assets | Amount(Rs.) |
|
Capital: Virad 3,00,000 Vishad 2,50,000 Roma 1,50,000 Reserve Fund Creditors
|
7,00,000 60,000 1,10,000
|
Building Machinery Patents Stock Debtors Cash
|
2,00,000 3,00,000 1,10,000 1,00,000 80,000 80,000
|
| 8,70,000 | 8,70,000 |
Virad died on October 1, 2013. It was agreed between his executors and the remaining partner's that:
a. Goodwill of the firm is valued at 2 ½ years purchase of average profits for the last three years. The average profits were Rs.1,50,000.
b. Interest on capital is provided at 10% p.a.
c. Profit for the year 2013-14 is taken as having accrued at the same rate as that of the previous year which was Rs.1,50,000.
Prepare Virad's Capital Account to be presented to his Executors as on October 1, 2013.
A. B, C and D were partners in a firm sharing profits in the ratio of 4: 3: 2: 1. On 1-1-2015 they admitted E as a new partner for `1/10` share in the profits. E brought Rs 10,000 for his share of goodwill premium which was correctly recorded in the books by the accountant. The accountant showed goodwill at Rs 1,00,000 in the books. Was the accountant correct in doing so? Give reason in support of your answer.
Anant, Gulab and Khushbu were partners in a firm sharing profits in the ratio of 5: 3: 2. From 1.4.2014, they decided to share the profits equally. For this purpose, the goodwill of the firm was valued at Rs 2,40,000.
Pass necessary journal entry for the treatment of goodwill on the change in the profit sharing ratio of Anant, Gulab and Khushbu.
The Current Ratio of a company is 2.1: 1.2. A state with reasons which of the following transactions will increase, decrease or not change the ratio:
(1) Redeemed 9% debentures of Rs 1, 00,000 at a premium of 10%.
(2) Received from debtors Rs 17,000.
(3) Issued Rs 2,00,000 equity shares to the vendors of machinery.
(4) Accepted bills of exchange drawn by the creditors Rs 7,000.
The Current Ratio of a company is 2.5: 1.5. A state with reasons which of the following transactions will increase, decrease or not change the ratio
(1) Discounted a bill receivable of Rs 10,000 from the bank, Bank charged discount of Rs 200.
(2) A bill receivable Rs 8,000 discounted with the bank was dishonoured.
(3) Cash deposited into bank Rs 7,000.
(4) Paid cash Rs 5,000 to the creditors
State the ratio in which the partners share profits or losses on the revaluation of assets and liabilities when there is a change in profit sharing ratio amongst existing partners?
W and R are partners in a firm sharing profits in the ratio of 3 : 2. Their Balance Sheet as on 31st March, 2016 was as follows
|
Balance Sheet of W and R as on 31.3.2016 |
||||
|
Liabilities |
Amount (Rs) |
Assets |
Amount (Rs) |
|
|
Sundry Creditors |
20,000 |
Cash |
12,000 |
|
|
Provision for Bad Debts |
2,000 |
Debtors |
18,000 |
|
|
Outstanding Salary |
3,000 |
Stock |
20,000 |
|
|
General Reserve |
5,000 |
Furniture |
40,000 |
|
|
|
|
Plant & Machinery |
40,000 |
|
|
Capitals: |
|
|
|
|
|
W |
60,000 |
|
|
|
|
R |
40,000 |
1,00,000 |
|
|
|
|
1,30,000 |
|
1,30,000 |
|
|
|
|
|
||
On the above date C was admitted for 16th16th share in the profits on the following terms:
(i) C will bring Rs 30,000 as his capital and Rs 10,000 for his share of goodwill premium, half of which will be withdrawn by W and R.
(ii) Debtors Rs 1,500 will be written off as bad debts and a provision of 5% will be created for bad and doubtful debts.
(iii) Outstanding salary will be paid off.
(iv) Stock will be depreciated by 10%, furniture by Rs 500 and Plant and Machinery by 8%.
(v) Investments Rs 2,500 not mentioned in the balance sheet were to be taken into account.
(vi) A creditor of Rs 2,100 not recorded in the books was to be taken into account. Pass necessary Journal Entries for the above transactions in the books of the firm on C’s admission.
Pankaj and Naresh were partners in a firm sharing profits in the ratio of 3 : 2. Their fixed capitals were Rs 5,00,000 and Rs 3,00,000 respectively. On 1.1.2017, Saurabh was admitted as a new partner for `1/5th` share in the profits. Saurabh acquired his share of profit from Pankaj. Saurabh brought Rs 3,00,000 as his capital which was to be kept fixed like the capitals of Pankaj and Naresh.
Calculate the goodwill of the firm on Saurabh's admission and the new profit sharing ratio of Pankaj, Naresh and Saurabh. Also, pass necessary journal entry for the treatment of goodwill.
Mahadev, Sukesh, Menon and Thomas were partners in a firm sharing profits in the ratio of 5 : 2 : 2 : 1. On 31st March 2016 their Balance Sheet was as follows:
|
Balance Sheet of Mahadev, Sukesh, Menon and Thomas as at 31.3.2016 |
||||
|
Liabilities |
Amount (Rs) |
Assets |
Amount (Rs) |
|
|
Capitals: |
|
Fixed Assets |
18,00,000 |
|
|
Mahadev |
7,00,000 |
|
Current Assets |
6,75,000 |
|
Sukesh |
6,00,000 |
|
|
|
|
Menon |
5,00,000 |
|
|
|
|
Thomas |
4,50,000 |
22,50,000 |
|
|
|
|
|
|
|
|
|
Sundry Creditors |
1,50,000 |
|
|
|
|
Workmen Compensation Reserve |
75,000 |
|
|
|
|
|
24,75,000 |
|
24,75,000 |
|
|
|
|
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From the above data the partners decided to share the future profits in the ratio of 4 : 3 : 2 : 1. For this purpose the goodwill of the firm was valued at Rs 1,20,000. The partners also agreed for the following:
(i) Claims against Workmen Compensation Reserve was estimated at Rs 1,00,000 and Rs 75,000 depreciation on fixed assets was to be provided.
(ii) Capitals of the partners will be adjusted according to the new profit sharing ratio by bringing in or paying off cash as the case may be.
Prepare Revaluation Account, Partners Capital Accounts and the Balance Sheet of the reconstituted firm.
Arun and Arora were partners in a firm sharing profits in the ratio of 5 : 3. Their fixed capitals on 1-4-2010 were: Arun Rs 60,000 and Arora Rs 80,000. They agreed to allow interest on capital @ 12% p.a. And to charge on drawings @ 15% p.a. The profit of the firm for the year ended 31-3 2011 before all above adjustments were Rs 12,600. The drawings made by Arun were Rs 2,000 and by Arora Rs 4,000 during the year. Prepare Profit and Loss Appropriation Account of Arun and Arora. Show your calculations clearly. The interest on capital will be allowed even if the firm incurs loss.
G', 'E' and 'F' were partners in a firm sharing profits in the ratio of 7 : 2 : 1. The Balance Sheet of the firm as on 31st March, 2011 was as follows:
|
Balance Sheet of 'G', 'E' and 'F' as on 31st March, 2011 |
||||
|
Liabilities |
Amount Rs |
Assets |
Amount Rs |
|
|
Capitals: |
|
Goodwill |
40,000 |
|
|
‘G’ |
70,000 |
|
Land & Buildings |
60,000 |
|
‘E’ |
20,000 |
|
Machinery |
40,000 |
|
‘F’ |
10,000 |
1,00,000 |
Stock |
7,000 |
|
General Reserve |
20,000 |
Debtors |
12,000 |
|
|
Loan from ‘E’ |
30,000 |
Cash |
5,000 |
|
|
Creditors |
14,000 |
|
|
|
|
|
1,64,000 |
|
1,64,000 |
|
|
|
|
|
|
|
‘E’ died on 24th August 2011. Partnership deed provides for the settlement of claims on the death of a partner of a partner in addition to his capital as under:
(i) The share of profit of deceased partner to be computed up to the date of death on the basis of average profits of the past three years which was Rs 80,000.
(ii) His share in profit/loss on revaluation of assets and re-assessment of liabilities which were as follows:
Land and Buildings were revalued at Rs 94,000, Machinery at Rs 38,000 and Stock at Rs 5,000. A provision of `2 1/2%` was to be created on debtors for bad and doubtful debts.
(iii) The net amount payable to 'E's executors was transferred to his Loan Account, to be paid later on.
Prepare Revaluation Account, Partner's Capital Accounts, E's Executor A/c and Balance Sheet of 'G' and 'F' who decided to continue the business keeping their capital balances in their new profit sharing ratio. Any surplus or deficit to be transferred to current accounts of the partners
Sanjay and Sameer were partners in a firm sharing profits in the ration of 2 : 3. On 31.3.2011 their Balance Sheet was as follows:
|
Balance Sheet of Sanjay and Sameer as on 31.3.2011 |
||||
|
Liabilities |
Amount Rs |
Assets |
Amount Rs |
|
|
Capitals |
|
Land and Building |
3,00,000 |
|
|
Sanjay: |
2,00,000 |
|
Stock |
1,00,000 |
|
Sameer: |
3,00,000 |
5,00,000 |
Debtors |
1,50,000 |
|
Creditors |
1,05,000 |
Bank |
1,55,000 |
|
|
Workmen compensation Fund |
1,00,000 |
|
|
|
|
|
7,05,000 |
|
||
The firm was dissolved on 1.4.2011 and the Assets and Liabilities were settled as follows:
(i) Sanjay agreed to take over land and Building at Rs 3,50,000 by paying cash;
(ii) Stock was sold for Rs 90,000.
(iii) Creditors accepted Debtors in full settlement of their claim.
Pass necessary Journal entries for dissolution of the firm.
How does the factor ‘Efficiency of Management’ affect the goodwill of a firm?
