Admission of a ...

On the admission of a new partner, it is believed that the assets have changed in value. to record a decrease in the value of an asset the double entry should be _____________________.

A,B, & C are equal partners. D is admitted to the firm for $$1/4$$th share. D brings Rs.$$20,000$$ capital and Rs.$$5,000$$ being half of the premium for goodwill.
The value of goodwill of the firm is

The profits for $$2012-2013$$ is Rs.$$2,000$$; for $$2013-2014$$ is Rs.$$26,100$$ and for $$2014-2015$$ is Rs.$$31,200$$. Closing stock for $$2013-2014$$ and $$2014-2015$$ includes the defective items of Rs.$$2,200$$ and Rs.$$6,200$$ respectively which were considered as having market value nil. Calculate goodwill on average profit method.

On $$1$$st April, $$2014$$ on the admission of a new partner, it is agreed that goodwill of the firm is valued at $$2$$years purchase of weighted average profits for the $$3$$ years. The profits for last $$3$$ years have been as follows:

Year ended	Profits	Weight
$$31$$st March $$2011$$	$$45,000$$	$$1$$
$$31$$st March $$2012$$	$$52,500$$	$$2$$
$$31$$st March $$2013$$	$$72,000$$	$$3$$

Value of goodwill will be

A, B & C are partners sharing profits and loss in the ratio $$3:2:1$$. They decide to change their profit sharing ratio to $$2:2:1$$. To gave effect to this new profit sharing ratio, they decide to value the goodwill at Rs. $$30,000$$. Pass the necessary journal entry if Goodwill not appearing in the old balance sheet and should not appear in the new balance sheet.

B's Capital A/c             Dr. C's Capital A/c            Dr. To A's Capital A/c	$$2,000$$ $$1,000$$	$$3,000$$
Goodwill A/c              Dr. To A's Capital A/c To B's Capital A/c To C's Capital A/c	$$30,000$$	$$12,000$$ $$12,000$$ $$6,000$$
A's Capital A/c             Dr. B's Capital A/c             Dr. C's Capital A/c             Dr. To Goodwill A/c	$$12,000$$ $$12,000$$ $$6,000$$	$$30,000$$
A's Capital A/c              Dr. To B's Capital A/c To C's Capital A/c	$$3,000$$	$$2,000$$ $$1,000$$

Find the goodwill from the following information:

Capital employed	Rs. $$8,25,000$$
Rate of normal return	Rs. $$10\%$$
Future Maintainable profit	Rs. $$1,50,000$$
Annuity factor	Rs. $$3.17$$

Profits & losses for the last years are:

$$2011-2012$$ Losses Rs. $$10,000$$

$$2012-2013$$ Losses Rs. $$2,500$$

$$2013-2014$$ Profits Rs. $$98,000$$

$$2014-2015$$ Profits Rs. $$76,000$$

The average capital employed in the business is Rs. $$2,00,000$$. The rate of interest expected from capital invested is $$12\%$$. The remuneration of partners is estimated to be Rs. $$1,000$$ per month. Calculate the value of goodwill on the basis of four years purchase of super profits based on the annuity of the four years. Take discounting rate as $$10\%$$.

The net profits of a business, after providing for income tax for the last $$5$$ years were: Rs. $$80,000$$, Rs. $$1,00,000$$, Rs. $$1,20,000$$, Rs. $$1,25,000$$ and Rs. $$2,00,000$$ respectively. The capital employed in the business is Rs. $$10,00,000$$ and the normal rate of return is $$10\%$$. Calculate the value of the goodwill on the basis of the annuity method taking the present value of annuity of Rs. $$1$$ for $$5$$ years at $$10\%$$ is $$3.7907$$.

A firm of X,Y & Z has a total capital investment of Rs.$$3,60,000$$. The firm earned net profit during the last four years as Rs.$$56,000$$, Rs.$$64,000$$, Rs.$$96,000$$ and Rs.$$80,000$$. The fair return on the net capital employed is $$15\%$$. Value of goodwill if it is based on $$3$$ years purchase of the average super profits of past $$4$$years.

A & B are partners with capitals of Rs.$$10,000$$ and Rs.$$20,000$$ respectively and sharing profits eqally. They admitted C as their third partner with $$1/4$$th profits on the payment of Rs.$$12,000$$. The amount of hidden goodwill is _______.