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प्रश्न
P, R and S are in partnership sharing profits 4/8, 3/8 and 1/8 respectively. It is provided in the Partnership Deed that on the death of any partner his share of goodwill is to be valued at one-half of the net profit credited to his account during the last four completed years.
R died on 1st January, 2018. The firm's profits for the last four years ended 31st December, were as:
2014 − ₹ 1,20,000; 2015 − ₹ 80,000; 2016 − ₹ 40,000; 2017 − ₹ 80,000.
(a) Determine the amount that should be credited to R in respect of his share of Goodwill.
(b) Pass Journal entry without raising Goodwill Account for its adjustment.
उत्तर
(a) Calculation of R’s Share of Goodwill
Profit credited to R’s Capital Account in 4 years = Net profit for last four years × R’s Share
=`(1,20,000 + 80,000 + 80,000 + 4,000) xx 3/8`
= `3,20,000 xx 3/8 = "Rs" 1,20,000`
`"R's share of goodwill" = 1/2 xx ("profit credited R's capital acccount in 4 years")`
= `1/2 xx 1,20,000`
= `"Rs" 60,000`
(b)
Journal
|
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
P’s Capital A/c |
Dr. |
|
48,000 |
|
|
S’s Capital A/c |
Dr. |
|
12,000 |
|
|
To R’s Capital A/c |
|
|
60,000 |
|
|
(R’s share of goodwill adjusted) |
|
|
||
Working Notes:
R’s Share of Goodwill = Rs 60,000
Old Ratio (P, R and S) = 4 : 3 : 1
R died.
∴ Gaining Ratio = 4 : 1
This share of goodwill is to be distributed between P and S in their gaining ratio (i.e. 4 : 1)
`"P's share in goodwill" = 60,000 xx 4/5 = "Rs" 48,000`
`"S's share in goodwill" = 60,000 xx 1/5 = "Rs" 12,000`
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|
Liabilities |
Amount (₹) |
Assets |
Amount (₹) |
||
| Creditors |
10,800 |
Cash at Bank | 13,000 | ||
| Bills Payable |
5,000 |
Debtors |
10,000 |
|
|
| Capital A/cs: |
|
Less: Provision for Doubtful Debts |
200 |
9,800 |
|
| A | 45,000 | Stock | 9,000 | ||
| B |
30,000 |
|
Machinery | 24,000 | |
| C |
15,000 |
90,000 |
Freehold Premises |
50,000 |
|
|
1,05,800 |
1,05,800 |
||||
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|
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| Profit (₹ ) | 30,000 | 50,000 | 40,000 | 60,000 |
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| 8,70,000 | 8,70,000 | ||||
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|
Liabilities |
₹ |
Assets |
₹ |
||
|
Trade Creditors |
40,000 |
Building |
2,00,000 |
||
|
General Reserve |
45,000 |
Plant and Machinery |
80,000 |
||
|
Capital A/cs: |
Stock | 35,000 | |||
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Debtors | 80,000 | ||
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80,000 |
3,95,000 |
|||
|
4,80,000 |
4,80,000 |
||||
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BALANCE SHEET as at 31st March, 2018
| Liabilities | Amount (₹) |
Assets | Amount (₹) |
||
| X's Capital A/c | 2,40,000 |
Machinery |
2,40,000 | ||
| Y's Capital A/c | 1,60,000 | Furniture | 1,50,000 | ||
|
Z's Capital A/c |
80,000 | 4,80,000 | Investments | 40,000 | |
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| Sundry Creditors | 40,000 | Cash in Hand | 22,000 | ||
| Z's Current A/c | 10,000 | ||||
| 6,35,000 | 6,35,000 | ||||
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| Liabilities | Amount (₹) |
Assets | Amount (₹) |
||
| Sundry Creditors | 13,800 | Furniture | 16,000 | ||
| General Reserve | 23,400 | Land and Building | 56,000 | ||
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| 1,47,200 | 1,47,200 | ||||
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| Liabilities |
Amount (₹) |
Assets |
Amount (₹) |
|
| Creditors | 50,000 | Land | 50,000 | |
| Bills Payable | 20,000 | Building | 50,000 | |
| General Reserve | 30,000 | Plant | 1,00,000 | |
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| 2,75,000 | 2,75,000 | |||
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BALANCE SHEET OF RAM, MOHAN, SOHAN AND HARI
as on 1st April, 2016
| Liabilities | ₹ | Assets | ₹ | |
| Capital A/cs: | Fixed Assets | 9,00,000 | ||
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Assets |
Amount (₹) |
|
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