Question

vinay and sanjay are equal partners in a firm.the profit and losses of last 5 years are as follows:-​

Answer 1

Answer:

(a) Ajay will bring Rs. 5,000 (1/4 of Rs. 20,000) as his share of goodwill (premium) (b) Sacrificing Ratio is 2:3 as calculated below: For Vijay, old ratio is 3/5 and the new ratio is 2/4, hence, his sacrificing ratio is

=35−24=12−1020=220

For Sanjay old ratio is 2/5 and the new ratio is 1/4. hence, his sacrificing ratio is =25−14=8−520=320

Answer 2

Given:

• Vijay and Sanjay are partners in a firm, sharing profits and losses in the ratio 1:1.
• The profits for the last 5 years were: 2017 - Rs 80,000; 2018 - Rs 1,20,000; 2019 - Rs 1,43,500; 2020 - Rs (88,000); 2021 - Rs 68,000.

To find: The goodwill of the firm at 3 years' purchase of the average profit of the last 5 years and the amount of goodwill that Mohan, a new partner for 1/3rd share, should bring.

Answer:

Average profit = Total profit ÷ Number of years

• Total profit = Rs 80,000 + Rs 1,20,000 + Rs 1,43,500 - Rs 88,000 - Rs 68,000 = Rs 1,95,500
• Number of years = 5

Average profit = Rs 1,95,500 ÷ 5 = Rs 39,100

Goodwill = Average profit × Number of years' purchase

• Average profit = Rs 39,100
• Number of years' purchase = 3

Goodwill = Rs 39,100 × 3 = Rs 1,17,300

Mohan is admitted into the firm for 1/3rd share. Mohan would have to bring 1/3rd of the amount of goodwill, i.e., 1/3 × Rs 1,17,300 = Rs 39,100.

Therefore, the goodwill of the firm is Rs 1,17,300 and the amount of goodwill that Mohan has to bring is Rs 39,100.