Showing your working clearly pass necessary journal entries on the reconstitution of the firm. From 1st April, 2018 they decided to share future profits and losses in the ratio of 2 : 5 : 3. 12,000 × 4 = Rs. Partners agreed that altered values are not to be recorded in the books and they also do not want to distribute the general reserve. 5,00,000 + Rs. Give any three features of goodwill. Question 3. Question 39. Also prepare the revised balance sheet. Pass a single journal entry to record the change. DK Goel Textbook Solutions are outlined by subject matter experts. Calculation of Sacrificing or Gaining Ratio =. 10,000 Loss                 6th year       Rs. Distinguish between average profit and super profit method of valuation goodwill. Outside Liabilities Rs. 4,00,000 – Rs. 2,00,000. They prepared a Revaluation Account on this date and an unrecorded asset (Motorbike) worth Rs. Give the necessary journal entry to record the above change. 5,00,000 including cash of Rs. (vii)             The work of reconstitution was assigned to firm's auditors. 40,000 and Rs. DK Goel Accountancy Class 11 Solutions Chapter 6. Case (v) If the market value of Investments is Rs. On what occasions does the need for valuation of goodwill arise? For this purpose it was agreed that: (a) Goodwill of the firm was valued at Rs. (ii)                Stock be appreciated by 20%. (ii)                Stock be appreciated by 20% and fixed assets be depreciated by 10%. 41,000 (after an abnormal loss of Rs. 60,000 – Rs. DK Goel solutions are created by SelfStudys experts in their respective Accountancy field. 1,20,000 + Rs. DK Goel Solutions Class 12 Vol 2 Account Solutions Vol 2 Chapter 3 is considered to be the most helpful study material for the students pursuing their class 12. Calculation of Sacrifice or Gaining Ratio =. 20,00,000. The agreed profits for goodwill purpose of the past five years are as follows: Year ending on 31st March 2013                                1,30,000, Year ending on 31st March 2014                                1,20,000, Year ending on 31st March 2015                                1,50,000, Year ending on 31st March 2016                                1,10,000, Year ending on 31st March 2017                                2,00,000, Total Profit = Rs. Why are reserves and accumulated profits credited to the partner’s capital accounts in case of change in profit sharing ratio amongst the existing partners? Prepare Revolution Account, Partners' Capital Accounts and the Balance Sheet of the reconstituted firm. DK Goel Solutions Class 12 furnish a wide range of solutions that certainly supports the students to understand, analyse and solve them. 4,00,000 = Rs. Question 32. Explain any two methods of valuation of goodwill. On that date decided to admit C as a new partner. 4,20,000. A firm is reconstituted on the occasions of :-1.) Case (iv) If a claim on account of workmen's compensation is estimated at Rs.50,000. Question 60. A and B sharing profits and losses in the ratio of 2:3, decide to share future profit and losses equally with effect from 1st April, 2016. 40,000 was purchased and debited to office expenses account on which depreciation is to be charged @25% p.a. Click... Click here to download CBSE Class 12 Accountancy MCQs for important topics, Download latest MCQs for Class 12 Accountancy, download in pdf free, Access topic wise Presentation for Class 12 Accountancy for important topics of all chapters in Class 12 Accountancy Book, Free CBSE Class 12 Accountancy Online Mock Test with important multiple choice questions as per CBSE syllabus. Right now we added the solutions of the class 12th Accountancy text book Vol-3 (D.K. They also desire to leave the reserve and surplus undisturbed. ICSE - goyal brothers X and Y are partners sharing profits and losses in the ratio of 4: 3. Capital invested in the business is Rs. 50,000) + Rs. Its creditors amounted to Rs. Goodwill of the firm is valued at Rs. From 1st April, 2018 they decided to share profits in the ratio of 2:2:1. For this purpose goodwill is to be valued at 100% of the average annual profits of the last four years. 10,000 on debtors. 50,000, for second year twice the profit of first year and for the third year one and half times the profit of the second year. Question 1. On April 1st 2020, an existing firm had assets of Rs. Pass a single journal entry to give effect to the above. A number of examples have been given in each chapter and these have been explained in such an easy manner that students can clearly understand them. Question 2. 20,000 for this work. Solution  6       The need for valuing the goodwill in partnership arise in the following circumstances: 1.) 40,000), 31st March, 2017 :              Loss               20,000, 31st March, 2018 :              Profit             1,80,000, 31st March, 2019 :              Profit             2,00,000. 400 per year, (v) Reasonable remuneration of the proprietor of business is Rs. All questions and answers from the Accountancy Dk Goel 2018 Book of Class 11 Commerce Accountancy Chapter 13 are provided here for you for free. Most of the solutions given in DK Goel Accountancy solutions are most likely to appear in the board examinations. DK Goel Solutions to these sum up to be the certain questions asked in the board examinations. 36,000 + Rs. They decided that with effect from April 1, 2016 they would share profits and losses in the ratio of 3: 2. Case (iii) If a claim on account of workmen's compensation is estimated at Rs. An existing firm had assets of Rs. If the profits of the firm are Rs. The questions provided in DK Goel (2019) Books are prepared in accordance with CBSE, thus holding higher chances of appearing on CBSE question papers. 6,00,000. 80,000), 31st March, 2018            Profit           1,50,000, 31st March, 2019            Profit           2,00,000. 50,000 and the profits for the year 2015 were effected by a loss due to fire amounting to Rs. Normal Profit = Capita Employed × Normal Rate of Return, Goodwill = Super Profit × Number of Year’s Purchase, Adjustment Profit = Average Profit earned by the firm + Under Valuation of Stock, Adjustment Profit = Rs. Verification of books of accounts revealed the following: (i)                  During the year ended 31st March, 2017, a machine got destroyed in accident and Rs. If the normal rate of return is 12% and the goodwill of the firm is valued at Rs. They decide to take D into partnership for 1/4th share on 1st April, 2017. 20,000 on that date. X, Y and Z are partners sharing profits in the ratio of 5 : 4 : 1. Solution  13     Yes, it is necessary to revalue Assets and liabilities of a firm must also be revalued at the time of change in profit sharing ratio of existing partners. 42,000 × 4 = Rs 1,68,000. You are required to give effect to the change by passing a single journal entry. They do not want to record the revised values of assets and liabilities in the books. For this purpose goodwill is to be valued at 2 year’s purchase of the average profits of the last four years, which were: Year ending 31st March 2013                      20,000 (Loss), Year ending 31st March 2014                      48,000 (Profit), Year ending 31st March 2015                      60,000 (Profit), Year ending 31st March 2016                      80,000 (Profit). 80,000. Calculate goodwill at five times the super profits. Their Balance Sheet as at March 31, 2019 was as follows: Aniu and Anupma decided to share the profit equally, w.e.f. Partners decided to record the revised values in the books. 84,000 – Rs. 50,000. Solution  17     Dinesh must have given the argument that liability towards salaries related to the old firm when the profit sharing ratio was 3:1. 1,20,000 and Rs. 30,000 + Rs. Free Sample Papers with solutions for Class 12 Accountancy... Download past year Question Papers for Class 12 Accountancy as per CBSE NCERT KVS syllabus with solutions in pdf free. (iv) An item of Rs. You are required to : (a) Record the necessary journal entries to give effect to the above agreement, without opening revaluation account; (b) Prepare the capital accounts of the partners; and. Debit C and Credit A by Rs. ), 2013-14                :               2,00,000, 2014-15                :               (3,00,000), 2015-16                :               4,50,000 (including an abnormal gain of Rs. (4)    An amount of Rs. paper, 3 Tools For Financial Analysis Comparative Statements, Play as a comprehensive means for preparation and revision. A partnership firm earned net profits during the last three years as follows: Years                                     Net Profit, 2007-2008                            1,90,000, 2008-2009                            2,20,000, 2009-2010                            2,50,000, The capital employed in the fire throughout the above mentioned period has been Rs. From 1st April, 2018 they decided to share profits equally. The questions provided in DK Goel (2019) Books are prepared in accordance with CBSE, thus holding higher chances of appearing on CBSE question papers. Question 30. Calculate each partner's gain or sacrifice due to change in ratio. 60,000 Profit, 2nd year                  Rs. Calculate the value of goodwill as on 1st April, 2015, on the basis of 2 year's purchase of the average profits of the last five years. Average Profits are Rs. 66,000. 3,00,000. 1,80,000, Super Profit = Actual Average Profit – Normal Profit, Goodwill = Super Profit × Number of year Purchases. 20,000 + Rs. A's Capital                                                                                                                                                                           5,00,000, B's Capital                                                                                                                                                                           4,00,000, General Reserve                                                                                                                                                                  1,50,000, Profit & Loss A/c (Cr.) L, M and N are partners sharing profits and losses in equal proportion. 75,000 as Workmen Compensation Reserve against which there was no liability. Capital Required:- The amount of capital required for a business will also influence the value of goodwill. (i)                  Provision for doubtful debts be increased by Rs. What is meant by number of years' purchase at the time of valuation of goodwill? They decided that with effect from 1st April, 2016, they will share profits in the ratio of 4: 6:5. 40,000) be reduced by Rs. (v)                Outstanding expenses be increased by Rs. Goodwill of the firm is to be valued on the basis of two years purchase of last three years average super profits. 1,00,000 excluding stock of Rs. Download solutions... Download latest 2021 Sample Papers for Class 12 Accountancy as per CBSE NCERT pattern and syllabus. 4,00,000. Anupma, Purnima and Ruchika are partners in a business. What adjustments are required at the time of reconstitution of a partnership firm? Capital Employed = Rs. Find out the value of goodwill. Question 55. You are required to calculate C's share of goodwill. 1,10,000. 2,40,000, Super Profit = Rs. Charu and Dinesh have been sharing profits in the ratio of 3 : 1. 60,000. 20,000 in General Reserve. (vi)              Goodwill is valued at Rs. Explain what argument must have been put forward by Priya to which Rani agreed? 1,50,000. Question 45. 2,90,000. 90,000. (ii)                Furniture (book value of Rs. Table Of Contents dk goel accounts book class 12 solutions pdf. Just click the button to select and download content Download dk goel accounts book class 12 solutions pdf Read 2213383 many times Principles and Practice of Trauma Care Calculate the value of goodwill on the basis of three year’s purchase of weighted average profits. Accountancy in PDF free not likely to appear in the ratio of.. Solutions Class 11 DK Goel Accountancy has been created by SelfStudys experts in their Accountancy. 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