Years | Profit/Loss | |
2013 | 30,000 | |
2014 | 70,000 | (including an abnormal gain of Rs. 10,000) |
2015 | 1,00,000 | (after charging an abnormal loss of Rs. 20,000) |
2016 | 1.40,000 | |
2017 | 1.20,000 |
Answer:
(i) Calculation of Goodwill
Average Profits \[=\text{Total}\,\text{Profits}\,\text{/}\,\text{Number}\,\text{of}\,\text{Years }\,\Rightarrow \,\,\frac{4,70,000}{5}=Rs.\,94,000\] Goodwill \[=\,\,\text{Average}\,\text{Profits}\,\,\text{ }\!\!\times\!\!\text{ }\,\,\text{Number}\,\text{of}\,\text{Years }\!\!'\!\!\text{ }\,\text{Purchase}\Rightarrow 94,000\times 4=Rs.\,3,76,000\] Divakar?s Share of Goodwill \[=3,76,000\times \frac{1}{4}=Rs.\,94,000\] (ii) JOURNAL Average Maintainable Profits Amt (Rs.) Profit for 2013 30,000 Profit for 2014 (70,000 - 10,000) 60,000 Profit for 2015 (1,00,000 + 20,000) 1,20,000 Profit for 2016 1,40,000 Profit for 2017 1,20,000 Total Profit for Last 5 Years 4,70,000
Working Notes 1. Calculation of Change in Profit Share of Partners Sacrificing/Gaining Share = Old Share - New Share \[A=\frac{3}{9}-\frac{1}{3}=\frac{3-3}{9}=Nil\] \[B=\frac{4}{9}-\frac{1}{3}=\frac{4-3}{9}=\frac{1}{9}Sacrifice\] \[C=\frac{2}{9}-\frac{1}{3}=\frac{2-3}{9}\left( \frac{1}{9} \right)Gain\] 2. Share of Goodwill \[B=45,000\times \frac{1}{9}=Rs.\,5,000\] \[C=45,000\times \frac{1}{9}=Rs.\,5,000\] Date Particulars LF Amt (Dr) Amt (Cr) 2017 April 1 ?C?s Capital A/c (WN 2) Dr 5,000 To B?s Capital A/c (WN 2) 5,000 (Being share of goodwill adjusted on change on change in profit sharing ratio)
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