Admission of a ...

On 1st April, 2011 on the admission of a new partner, it is agreed that goodwill of the firm is valued at 3 years purchase of average profits for the last five years. The profits for last 5 years have been as follows:

A & B are partners sharing profits and losses in the ratio of $$3:2$$. C joins the firm for $$1/3$$rd share, and is to pay Rs.$$40,000$$ as premium for goodwill but cannot pay anything. As netween A and B, they decided to share profits and losses equally. Goodwill already appearing in balance sheet is $$1,00,000$$ Required journal entry

A & B were partners sharing profits & losses in the ratio of $$3:1$$. C was admitted to the firm on the following terms:
C would provide Rs.$$1,00,000$$ as a capital and pay Rs.$$20,000$$ as goodwill for his $$1/3$$rd share in future profits. Goodwill account would not appear in the books. A,B & C would share profits equally. Which of the following journal is correct in relation to premium for goodwill Rs.$$20,000$$ brought in by new partner?

A & B are sharing profits in the ratio of $$5:3$$. C was admitted on the following terms:
New profit sharing ratio wiill be $$7:5:3$$
Machinery would be appreciated by $$10\%$$ (book value Rs.$$1,80,000$$)
Building would be depreciated by $$6\%$$ (book value Rs.$$1,50,000$$)
To create provision for bad debts $$5\%$$ on Debtors of Rs.$$40,000$$
Find the distribution of profit/loss on revaluation between A & B

The profits and losses for the last four 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 for capital invested is $$12\%$$. The remuneration of partners is estimated to be Rs 1,000 per month not charged in the above losses/profits. Calculate the value of goodwill on the basis of two years purchase of super profits based on the average of 4 years.

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.

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

Capital employed by a partnership firm is $$Rs.1,00,000$$. Its average profit is $$Rs.20,000$$. Normal rate of return is $$15\%$$. Value of goodwill 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 include 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 last three years. The profits for last $$3$$ years have been as follows: