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Answer

Calculate the value of goodwill as on 1st April, 2024, on the basis of 2 and 1/2 year’s purchase of the average profits of the last five years. The profits and losses for the years ending 31st March were: 2019 ₹ 80,000; 2020 ₹ 1,00,000; 2021 Loss ₹ 30,000; 2022 ₹ 1,70,000; 2023 ₹ 1,60,000 and 2024 ₹ 1,80,000

Solution:-

Anurag Pathak
August 5, 2024

The average profit earned by a firm is ₹ 75,000 which includes undervaluation of stock of ₹ 5,000 on an average basis. The capital invested in the business is ₹ 7,00,000 and the normal rate of return is 7%

Solution:-

Anurag Pathak
August 4, 2024

Amit, Archit and Akshat are partners in a firm in the ratio of 3 : 2 : 1. On 1st April, 2023 they decided to share the profits in future in the ratio of 7 : 5 : 4. On this date General Reserve is ₹ 38,000 and profit on revaluation of assets and liabilities being ₹ 34,000

Solution:-

Anurag Pathak
August 4, 2024

L, M and N are partners sharing profits and losses in equal proportion. On 31st March 2021, their balance sheet was as follows:

Solution:- Working Notes:-

Anurag Pathak
August 4, 2024

P, Q and R are in partnership sharing profits and losses in the ratio of 5 : 4 : 3. On 31st March 2023, their balance sheet was as follows:

Solution:- Working Notes

Anurag Pathak
August 2, 2024

X and Y are partners sharing profits and losses in the ratio of 4 : 3. Their Balance Sheet as at 31st March, 2021 stood as follows:

Solution:- Working Notes:-

Anurag Pathak
August 2, 2024

Aman, Bobby and Chandani were partners in a firm sharing profits and losses in the ratio of 5 : 4 : 1. From 1st April, 2018 they decided to share profits equally. The revaluation of assets and re-assessment of liabilities resulted in a loss of ₹ 5,000

Solution:-

Anurag Pathak
August 2, 2024

Asha, Rina and Chahat were partners in a firm sharing profits and losses in the ratio of 2 : 2 : 1. Their Balance Sheet as at 31st March, 2019 was as follows:

Solution:- Working Notes:-

Anurag Pathak
August 2, 2024

A, B and C are partners sharing profits and losses in the ratio of 2 : 2 : 1. From 1st April, 2023 they decided to share future profits and losses equally.

Solution:- Working Notes:-

Anurag Pathak
August 2, 2024

P, Q and R were partners sharing profits in the ratio of 1 : 3 : 2. Following was their Balance Sheet as at 31st March, 2022:

Solution:-

Anurag Pathak
August 1, 2024