Question

Journalise the following transactions in the books of Mr. Raj Kanwan for the month of April 2020
started business with cash 100000.

Furniture 30000 & computer 50000.

purchased goods from Mr X 210000 at 15% Trade discount "10 Goods retromed to Mrx 2 1000

Sold Goods to Mr Keshav at a -Price) List price of 2 40000 at 10% Trade



Goods deturmed by Mr Keshav 2000 ​

Answer 1

Answer:

Annu, Baby and Chetan are partners in a firm sharing profits and losses equally. They decide to take Deep

nito partnership from 1st April, 2019 for 1/5th share in the future profits. For this purpose, goodwill is to

be valued at 100% of the average annual profits of the previous three or four years, whichever is higher.

The annual profits for the purpose of goodwill for the past four years were:

Year Ended

Profit

31st March, 2019

2,88.000;

31st March, 2018

1,81,800

31st March, 2017

1,87,200

31st March, 2016

Calculate the value of goodwill.

2,53,200

(Ans.: Goodwill-

2.27,550.)

kerage Protit Met

W

rotit Method whe paet Adimetments are Made