Cake and Muffin are Partner sharing
Profits and losses in the ratio of
5:4. On 1st April 2016, they admit Cookie
as a new partner for 1/6th Share in the
Profits of the firm and the new ratio
agreed upon is 3.2.1. Goodwill, at the
time of Cookie's admission is to be.
Valued on the basis of Capitalisation of
the average Profit of the last three
years:year ended 31 march 2014 39000 including abnormal loss of 9000
year ended 31 march 2015 83000 including abnormal loss of 8000
year ended 31 march 2016 72000
Answers
Answer:
last three
yarch 2014 39000 including ab son 0
ye76437993000 including abnormal loss of 8000
year ended 31 march 2016 72000
Explanation:
Calculation of Cookie's Share of Goodwill in the firm:
Calculation of Average Normal Profit:
Year ended Profit ₹
31st March 2014 ₹39,000 + ₹9,000 48,000
31st March 2015 ₹83,000 + ₹8,000 75,000
31st March 2016 72,000
1,95,000
Average Normal Profit =
₹
= ₹65,000
Capitalised Value of Average Profits =
=
Capital Employed (Net Assets) = Total Assets - Outside Liabilities
= ₹8,00,000 - ₹3,60,000 = ₹4,40,000
Goodwill = Capitalised Value of Average Profits - Net Assets
= ₹5,00,000 - ₹4,40,000 = ₹60,000
Cookie's Share of Goodwill
₹
Date Particulars L.F Dr. Cr. (₹)
2016 April 1 Bank A/c Dr. 2,00,000
To Cookie's Capital A/c 2,00,000
(Amount of capital brought in cash)
Cookie's Current A/c Dr. 10,000
To Cake's Capital A/c 3,333
To Muffin's Capital A/c 6,667
(Cookie's share of goodwill credited to sacrificing partners in their sacrificing ratio of 1 : 2)