83. Afler passung ber 12. class Varun stacked hat einh
hustaedt He invested 200.000 al Capital which was given to
het by his father. He obtained a loan of E100,000 from
hu okolice busther Neeraj, who will working as an Assurant
Manager A KICI Bank. In the first year he incurred a
to his suppliers them
oubt haraline bills. This created a financial problem for hom
and he had to any take loan of F Lagood from the ICTCT
Bank on the personal qurantee of her beather. He started
denge band wenk kwered the prices and infomed his
curente ahue the qualities of gende sold by him. Becaule
et there the sale increased four time and he earned
et pefit of E7500e in the second year
el denken and explain the form of Suningas organisation
shared by korun?
hat u of liability Vanin bas?
Exclaim any four features of such form of business
organisatie
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12th
Accountancy
Reconstitution of a Partnership Firm - Retirement / Death of a Partner
Gaining Ratio of the Remaining Partners
A and B are partners in a f...
ACCOUNTANCY
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Asked on December 26, 2019 by
Lakshmipriya Sabharwal
A and B are partners in a firm with capital of Rs.1,20,000 respectively. They decide to admit C into the partnership for 1/4
th
share in the future profits. C is to bring in a sum of Rs.70,000 as his capital. Calculate amount of goodwill.
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ANSWER
Goodwill is the reputation of a business earned over some years represented in monetary terms. Whenever there is a change in the constitution of a partnership by way of admission,retirement or death, a valuation of goodwill is necessary.
In the given question we have to calculate hidden goodwill. Hidden goodwill is the goodwill which is not given in the question and we have to calculate it on the basis of total capital of the firm and other given information.
C's share is 1/4th and he brings 70,000 as his capital.
Total capital = 70,000 * 4 = 2,80,000
3/4th capital = 2,80,000-70,000 = 2,10,000
Total capital of A and B = 1,20,000+1,20,000 = 2,40,000
Value of goodwill = Difference between old and new capital
= 2,40,000 - 2,10,000 = 30,000
For 1/4th share, C is bringing 70,000 as capital. So,the new capital of the firm on the basis of C's capital is 2,80,000. A and B capital according to their ratio i.e 1:1 should be 2,10,000/2 = 1,05,000 each. So,the excess is goodwill.