Enter pincode to get tutors in your city. [Ans. 4,00,000. 48,000. It was agreed that: (i)                  Claim for Workmen Compensation has been estimated at Rs. 80,000), 31st March, 2018            Profit           1,50,000, 31st March, 2019            Profit           2,00,000. 75,000 as Workmen Compensation Reserve against which there was no liability. We have solved NCERT Textbook (Partnership Accounts NCERT Solutions). A, B and C are partners sharing profits and losses equally. Calculate goodwill of the firm based on three years' purchase of average super profits of last four years. 1,30,000, 2019-20                                                                                                Rs. 50,000 be depreciated by 10%. 75,000 which includes undervaluation of stock of Rs.5,000 on an average basis. 50,000) were valued at Rs.35,000. The partnership deed provides that in the event of any change in profit sharing ratio, the goodwill should be valued at three year's purchase of the average of five year’s profits. Actual Average Profit = Average Profit – Remuneration to Partners, Actual Average Profit = Rs. Such compensation is usually paid on the basis of proportionate amount of goodwill. 1,56,000, Goodwill valued at 3 years purchase of Super Profits                       Rs. (A)     A, B, C and D are partners in a firm sharing profits and losses in the ratio of 2:2:1:1 They decided to share future profits and losses in the ratio of 3:2:2:3. 60,000 at four year purchase of super profit, find the average profit of the firm. Stay tuned to BYJU’S to learn more. 48,000. Question 27. DK Goel Solutions Accountancy furnishes a wide range of solutions that certainly supports the students to understand, analyse and solve them. 5,00,000, Goodwill = Capitalised Value of Average Profits – Capital Employed. (iii)               Plant & Machinery be valued at Rs. A number of examples have been given in each chapter and these have been explained in such an easy manner that students can clearly understand them. Following information is available about the business of a firm : (i) Profits : In 2013, Rs. Goodwill is valued at Rs. Accountancy Dk Goel 2019 Solutions for Class 11 Commerce Accountancy Chapter 8 Trial Balance And Errors are provided here with simple step-by-step explanations. Pass journal entries and prepare Revaluation Account. 4,50,000. Its creditors amounted to Rs. Calculate the value of goodwill on the basis of three year’s purchase of weighted average profits. Anupma, Purnima and Ruchika are partners in a business. Average profits of the firm are Rs. 1,60,000 and 2015 Rs. On 1st April, 2019 they decided to share the profits in future in the ratio of 7:5:4. The agreed profits for goodwill purpose of the past five years are as follows: Year ending on 31st March 2013                                1,30,000, Year ending on 31st March 2014                                1,20,000, Year ending on 31st March 2015                                1,50,000, Year ending on 31st March 2016                                1,10,000, Year ending on 31st March 2017                                2,00,000, Total Profit = Rs. Here the negative value of is gaining and positive value is sacrificing. Question 6. DK Goel Solutions Class 11 Accounts subject is provided here. Question 11. Example:- If a firm earns a profit of Rs. [Ans. These solutions for class 12 are outlined keeping in mind the latest CBSE syllabus, hence possessing a big chance of appearing in the board exams. The appropriate weights to be used are : 2013 :-1; 2014: -2; 2015: -3. These Solutions are unquestionably helpful for students to practice on a daily base. 4,00,000. On what occasions does the need for valuation of goodwill arise? (iii)               Creditors amounting to Rs. 6,60,000. The firm has capital investment of Rs. park.. previous year question Goodwill of the firm is to be valued on the basis of two years purchase of last three years average super profits. How will you deal with reserves and accumulated profits at the time of change in profit sharing ratio among the existing partners? 80,000 + Rs. Question 33. were debited to Travelling Expenses Account on which depreciation is to be charged @ 10% p.a. 30,000, Super Profit = Rs. 1.) DK Goel Solutions Class 12 Part 1. (A)        A and B and C were in partnership sharing profits in the ratio of 4:3:1. Question 61. 3,000 included in sundry creditors is not likely to be claimed. Question 45. 50,000, for second year twice the profit of first year and for the third year one and half times the profit of the second year. DK Goel Accountancy Class 11 Solutions Chapter 6. Question 23. 50,000 + Rs. Case (iii) If the market value of Investments is Rs. 6,00,000. Record the necessary journal entry for the distribution of the balance in the Profit and loss Account. Having regard to the risk involved, 15% is considered to be a fair return on the capital. Question 3.      Who should compensate whom in case of a change in profit sharing ratio of existing partners? 10,000 on debtors. the partner whose share has increased as a result of change) to the sacrificing partner (i.e. Chapter wise Class 11 DK Goel solutions are made in such a way that students can easily … Nature of Goodwill:- If a business deals in goods of daily use, it will have steady profit as the demand for these goods will be stable. DK Goel Accountancy Solutions Class 12 Volume 2 – Part B, Copyright © 2019 All Rights Reserved, selfstudys.com, DK Goel Solutions Class 12 Chapter 3 Tools for Financial Analysis PDF, DK Goel Solutions Class 12 Chapter 1 Financial Statements of Companies, DK Goel Solutions Class 12 Chapter 2 Financial Statements Analysis, DK Goel Solutions Class 12 Chapter 3 Tools for Financial Analysis: Comparative Statements, DK Goel Solutions Class 12 Chapter 4 Common Size Statements, DK Goel Solutions Class 12 Chapter 5 Accounting Ratios, DK Goel Solutions Class 12 Chapter 6 Cash Flow Statement, Lakhmir singh and manjit kaur For this purpose it was agreed that: (a) Goodwill of the firm was valued at Rs. They decided to share profits in the ratio of 3 : 4 w.e.f., April 1, 2016. 5,00,000 including cash of Rs. 60,000 each. DK Goel Solutions Class 12 Vol 2 Chapter 3 Tools for Financial Analysis - Comparative Statements is considered to be the most helpful study material for the students pursuing their class 12. 20,000 annually. 41,500), 31st March, 2016 :              Profit             1,05,000             (after considering abnormal gain of Rs. The National Mission for Clean Ganga (NMCG) is organising the annual ‘Ganga Utsav’ on November 2nd , 3rd & 4th, 2020 on a virtual platform. Question 36. 75,000. Question 14. Chapter 9 Account Solutions Vol-2 – Chapter 3 – Download PDF; We hope that DK Goel Solutions Class 12 Accountancy helped with your studies. Download All DK Goel Textbook solutions for class 11 chapter 18 to understand all concepts in deatils. 34,000. A, B and C are partners sharing profits equally. Stock be valued at Rs. However, they do not want to disturb the reserves. The purpose of calculating sacrificing ratio is to determine the amount of compensation to be paid by the gaining partner (i.e. Question 2. Pass an entry to give effect to the above and prepare the revised balance sheet. What adjustments are required at the time of reconstitution of a partnership firm? Verification of books of accounts revealed the following: (i)                  During the year ended 31st March, 2017, a machine got destroyed in accident and Rs. Mention the occasions on which reconstitution of partnership firm can take place. The following information relates to a partnership firm : (a) Profits/Losses for the last six years : 1st year                   Rs. What is meant by number of years' purchase at the time of valuation of goodwill? Dinesh was of the view that it should be debited to Revaluation Account whereas Chaman was of the could be recorded in the books of accounts at the time of its payment. 1,00,000 excluding stock of Rs. The normal rate of return is 15% p.a. 1,10,000 + Rs. Normal Profit = Rs. On that date, the Balance Sheet of the firm showed Rs. Question 28. If it was recorded at the time of actual payment, the partners will bear the loss in 2:1. ), 2013                                              80,000, 2014                                              1,00,000, 2015                                              1,10,000, 2016                                              1,50,000. 25,000. Average rate of return in the same business is 12%. Amit, Archit and Akshat are partners in a firm in the ratio of 3:2:1. DK Goel Solutions Vol 2 are considered to be one of the best Solutions to be referred for the core subject of commerce stream. Of super profits. Partners do not want to distribute the Profit and Loss Account balance but prefer to record the change by an adjustment entry. Firm's average profits. On 1st October, 2016 a computer costing Rs. Calculation of Sacrificing or Gaining Ratio =. Access NCERT Solutions for Class 12 Accountancy. 1,30,000. This must be compensated by B by paying to A an amount equal to 1/5 th of total value of goodwill of the firm. 4,00,000. Case (ii) If a claim on account of workmen's compensation is estimated at Rs. 2,000). In other word, the gaining partner should pay the sacrificing partner that share of goodwill which is equal to the share gained by him. 1,80,000, Super Profit = Actual Average Profit – Normal Profit, Goodwill = Super Profit × Number of year Purchases. 40,000. 10,000. 50,000; Loss 2014 Rs. 42,000. Calculate goodwill from capitalization of average profits method. Also Check: DK Goel Solution for Chapter 4 Process and Bases of Accounting. Hence it should be Credited to Revaluation Account so that the profit on account of this asset shared in 2:1. Question 55. Important updates relating to your studies which will help you to keep yourself updated with latest happenings in school level education. (B)       A and B were in partnership sharing profits equally. 3,00,000 and reserves constituted the rest. I 2018 Solutions for Class 12 Accountancy Chapter 3 - Change in Profit-Sharing Ratio Among the Existing Partners; Double Entry Book Keeping- TS Grewal Vol. 1,30,000 + Rs. 5,00,000. (v)                Outstanding expenses be increased by Rs. With effect from 1st April 2019, they agreed to share the profits in 2:1. 12,000. From 1st April, 2017, they decided to share profits in the ratio of 3:4:5. 3,00,000 + (Rs. (iii)               Computers (book value of Rs. Investment Fluctuation Reserve                      54,000        Investments (at cost)                                     6,00,000. The goodwill of the firm on its reconstitution was valued at Rs. Average profits of the last three years are Rs. Depreciation was charged on Machinery 20% p.a. 84,000 – Rs. Question 2. A and B are partners. 5,00,000 + Rs. Most of the solutions given in DK Goel Accountancy solutions are most likely to appear in the board examinations. Average of such profits is multiplied by the agreed number of years to find out the value of goodwill. The new profit sharing ratio between A, B and C will be 4: 3:2. Following was their Balance Sheet as at 31st March, 2018 : On 1st April, 2018 they decided to share future profits in the ratio of 4:6:5. 32,000 + Rs. High Order... Access latest VBQ, Value Based Questions for Class 12 Accountancy as per CBSE and NCERT syllabus. (4)    An amount of Rs. 1,50,000 + Rs. 3,000. How will you deal with goodwill when there is change in the profit sharing ratio among the existing partners? With effect from 1st May 2016 they agreed to share in the ratio of 1: 2. Question 48. Chapter wise DK Goel Class 11 Accountancy Exercises with Solutions … (2)    A provision of 6% be made on debtors for doubtful debts. 20,000 for this work. Weights to be used are 1,2,3, and 4 respectively to the profits for 2013, 2014, 2015 and 2016. With effect from 1st April, 2016 they agreed to share profits in the ratio of 1 : 2 : 3. 20,000 and B will gain Rs. 30,000; 2013 Rs. Total Profit = Rs. 1,50,000. 3.) I 2018 Solutions for Class 12 Accountancy Chapter 4 - Admission of a Partner; Double Entry Book Keeping- TS Grewal Vol. DK Goel solutions are created by SelfStudys experts in their respective Accountancy field. ICSE - goyal brothers 75,000 in the Profit and Loss Account and a balance of Rs. Calculate the value of goodwill. 4.) Distinguish between average profit and super profit method of valuation goodwill. 50,000) + Rs. 5,00,000 + Rs. 60,000 – Rs. 50,000), 2016-17                :               3,50,000 (after charging an abnormal loss of Rs. It becomes effortless to prepare for the exams and score good marks as it highlights all the necessary concepts. You are informed that the profits of the year ending 31st March 2014 included profit on sale of a fixed asset amounting to Rs. Download DK Goel Solutions Class 11 Accountancy Bills of Exchange pdf, latest solutions for Accountancy latest book, Short Answer QuestionsQuestion 1. (vi)              Goodwill is valued at Rs. DK Goel Solutions Class 12 Chapter 3 Tools for Financial Analysis - Comparative Statements furnish a wide range of solutions that certainly supports the students to understand, analyse and solve them. It does not have an existence separate from that of an enterprise. 1,20,000. Free PDF download of DK Goel Solutions for Class 11 solved by Expert Teachers. 6,000 because goods were destroyed by fire, (iv) Goods have not been insured but it is thought to insure them in future. Solution  15     Anand would have given the argument that Workmen Compensation Reserve was created out of profits when their profit sharing ratio was 2 : 1. Question 9. 2018, their Balance Sheet was as follows: From April 1, 2018, they decided to share future profits in the ratio of 1:2:3. Access free T.S. Calculate goodwill at five times the super profits. 48,000, Rs. Anand was able to convince Vikas. Normal Profit = Capita Employed × Normal Rate of Return, Goodwill = Super Profit × Number of Year’s Purchase, Adjustment Profit = Average Profit earned by the firm + Under Valuation of Stock, Adjustment Profit = Rs. Charu and Dinesh have been sharing profits in the ratio of 3 : 1. 50,000 and the profits for the year 2015 were effected by a loss due to fire amounting to Rs. 90,000. The value of the liabilities is Rs. Question 6. Partners agreed that from 1st April, 2019 they will share profits in the ratio of 4:3:2:1 instead of their former ratio of 5 : 4:2:1. The profits and losses of the preceding five years ending 31st March are: Profits: 2012: Rs. Calculate each partner's gain or sacrifice due to change in ratio. 40,000 respectively. Answers and hints to answer the questions have been provided at the end of every question. 72,000. Question 46. Authors: D.K. Question 58. An existing firm had assets of Rs. 24,00,000 whereas Partner’s Capital is Rs. Case (iii) If a claim on account of workmen's compensation is estimated at Rs. (ii)                Stock be appreciated by 20% and fixed assets be depreciated by 10%. A's Capital                                                                                                                                                                           5,00,000, B's Capital                                                                                                                                                                           4,00,000, General Reserve                                                                                                                                                                  1,50,000, Profit & Loss A/c (Cr.) 5,000 income on investment. They agree to admit D for equal share. The competition is held online on the website www.bricsmath.com and... CBSE pioneered in providing digital academic documents through its academic repository called “Parinam Manjusha” and DigiLocker. Capital invested in a firm is Rs. If they are not adjusted at present, they will get adjusted later in their new profit sharing ratio which will result in loss to the sacrificing partner and gain to the gaining partner. The following is the balance sheet of a firm as at 31st March, 2019: On 1st April, 2019, the assets and liabilities were revalued as under:                                                    Rs. Solution  13     Yes, it is necessary to revalue Assets and liabilities of a firm must also be revalued at the time of change in profit sharing ratio of existing partners. Thus the formula is : Value of Goodwill = Average Profit × Number of Year of Purchases. X, Y and Z are partners sharing profits and losses in the ratio of 5: 3 : 2. Question 1. Question 32. X, Y and Z were sharing profits and losses in the ratio of 5: 3:2. Write any four factors which affect the goodwill of a partnership firm. 2,00,000. Debit C and Credit A by Rs. The solutions provided for the complex questions are simple, clear and explicit. Pass necessary journal entries on reconstitution of the firm. A and B have been carrying on business in partnership with fixed capitals of Rs. Pass necessary journal entries for the above. We provide all the DK Goel Solutions at free of cost on our website. B and C were partners in a firm sharing profits in the ratio of 1:3:2. 5,28,000. Question 30. 50,000. DK Goel Solutions have been one of the most preferred book which is used by commerce students of Class 11 and Class 12 for Accountancy. 1,90,000. On March 31, 2016, their Balance Sheet showed a general reserve of Rs. Solution  12     At the time of change in the profit sharing ratio, there are Reserves or Accumulated profits/losses existing in the books of the firm, these should be transferred to the Partner’s Capital Accounts or to Current Accounts in their old profit sharing ratio. Solution  11      A change in profit sharing ratio basically implies that one partner is purchasing from another partner, a share of profit previously belonging to the latter. With effect from 1st April 2019, they agreed to share the profits equally. Question 4. They decide to take D into partnership for 1/4th share on 1st April, 2017. 41,000 (after an abnormal loss of Rs. A and B sharing profits and losses in the ratio of 2:3, decide to share future profit and losses equally with effect from 1st April, 2016. Access free NCERT Solutions for class commerce Accountancy on LearnCBSE.in without any login. A partnership firm earned net profits during the last three years as follows: Years                                     Net Profit, 2007-2008                            1,90,000, 2008-2009                            2,20,000, 2009-2010                            2,50,000, The capital employed in the fire throughout the above mentioned period has been Rs. Volume 2 Covers of Partnership Accounts whereas Volume 2 has Company Accounts. Question 35. 60,000. Question 60. Their Balance Sheet as at 31st March, 2017 is as under: From 1st April, 2017, the partners agreed to share future profits in the ratio on 4:3 :3 and make the following adjustments : (i) Premises will be appreciated by 10% and stock by Rs. A and B are partners sharing profits and losses in the ratio of 3 : 1. On that date there was a credit balance of Rs. 40,000 and Rs. 5,00,000 – Rs. 2,60,000, Goodwill = Average Profit × Number of year purchases. A large number of questions based on Incomplete Information have been given at the end of every chapter. 3,00,000. Solution  16     Priya would have given the argument that unrecorded asset belonged old firm when the profit sharing ratio was 2 : 1. Is it necessary to revalue the assets and liabilities if there is a change in profit sharing ratio of the existing partners? L, M and N are partners sharing profits and losses in equal proportion. 2,00,000 – Rs. 2,00,000, Four years average profit is more than 5 years average profit. 20,000 Profit               4th year       Rs. Class 11 Accountancy Solutions by DK Goel chapter-wise are available which are free for all users to download as a PDF or to view online. Free Sample Papers with solutions for Class 12 Accountancy... Download past year Question Papers for Class 12 Accountancy as per CBSE NCERT KVS syllabus with solutions in pdf free. Profits of the last five years were : Year ended                                                   Rs. Question 16. 36,000, Rs. 20,000 on that date. The above-provided solutions are considered to be the best solution for ‘DK Goel Solutions Accountancy Class 11 Chapter 3 – “Accounting Principles’. Pass the necessary journal entry for the treatment of goodwill. 400 per year, (v) Reasonable remuneration of the proprietor of business is Rs. (iv) Accounting for Revaluation of Assets and Liabilities. 4,20,000. 74,400. 66,000. A fair rate of return on investment is 15% p.a. Partners’ capital Accounts showed a balance of Rs. (ii) Repairs to Machinery Rs. Capital Employed = Total Assets – Creditors, Capital Employed = Rs. Question 7. An existing firm had assets of Rs. 10,000 + Rs. Question 41. Calculate the value of goodwill. A firm is reconstituted on the occasions of :-. 10,000 Loss                 6th year       Rs. Question 12. 1,50,000 + Rs. 2.) 1,00,000 + Rs. On that date decided to admit C as a new partner. Give reason. Question 15. 4,00,000. The profits and losses for the years ending 31st March were: 2010 Rs. For this purpose the following were agreed upon : (i)                  Goodwill of the firm was valued at Rs. 30,000. 90,000, partner's capital accounts showed a balance of Rs. A firm is reconstituted on the occasions of :-1.) 5.) Average Profits are Rs. Chapter 3 Class 12 Dk Goel Pdf Download.pdf - Free download Ebook, Handbook, Textbook, User Guide PDF files on the internet quickly and easily. (i)                  Provision for doubtful debts be increased by Rs. 1,20,000 and Rs. Question 62. The solution for this question is as follows: 60,000 and Rs. Question 51. 24,000, (ii) Advertisement Suspense Account     Rs. 10,000; Profit 2015 Rs.1,64,000 and Profit 2016 Rs.1,80,000. Make adjustment by one single journal entry. 2,25,000. Priya and Rani were partners in a firm sharing profits and losses in the ratio of 2:1. Solution  17     Dinesh must have given the argument that liability towards salaries related to the old firm when the profit sharing ratio was 3:1. All questions and answers from the Accountancy Dk Goel 2018 Book of Class 11 Commerce Accountancy Chapter 13 are provided here for you for free. (iii)               Capitalization of super profits. LearnCBSE.in provided chapter wise detailed solution to the question of the NCERT (National Council of Educational Research and Training ) textbooks. Building                                                                                                                                                8,00,000, Plant and Machinery                                                                                                                              3,20,000, Stock                                                                                                                                                     2,60,000, Creditors                                                                                                                                                    84,000. If a business has no anticipated excess earning, it will have no goodwill. Capital Employed = Rs. Partners decide that General Reserve is to be transferred to Capital Accounts whereas revised values of assets and liabilities are not to be recorded in the books. Rs. 2,90,000. 60,000. Question 39. 30,000 respectively. The partner's capital accounts showed a balance of Rs.