DK Goel Solutions Q 39 Chapter 3 Admission of a Partner Class 12 CBSE [2023-24]
Step-by-step solution of Question 39, Chapter 3 Admission of a Partner, DK Goel Class 12 Accountancy 2023-24 for the CBSE Board.
Question 39
A and B are partners sharing profits in the ratio of 3 : 2. On 1st April, 2022 they admit C as a new partner for 1/4th share. C acquires 1/5th of his share from A.
Goodwill on C’s admission is to be valued on the basis of capitalisation of average profits of the last five years. Profits were :
- Year ended 31st March, 2018 — Profit ₹ 50,000
- 31st March, 2019 — Profit ₹ 1,20,000 (including gain of ₹ 40,000 from sale of fixed assets)
- 31st March, 2020 — Loss ₹ 60,000 (after charging Loss by Fire ₹ 50,000)
- 31st March, 2021 — Loss ₹ 1,00,000 (after charging voluntary retirement compensation paid ₹ 1,50,000)
- 31st March, 2022 — Profit ₹ 1,90,000
On 1st April, 2022, the firm had assets of ₹ 7,00,000 and external liabilities of ₹ 2,20,000.
The normal rate of return on capital is 12%.
C brings in ₹ 1,25,000 for his capital but is unable to bring his share of goodwill in cash.
- (i) You are required to calculate C’s share of goodwill,
- (ii) Pass necessary journal entries, and
- (iii) Calculate new profit sharing ratios.
Solution
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About this solution
This is Chapter 3 Admission of a Partner of DK Goel For 2024 Examinations.
Written by Vijay Adarsh, teaching commerce since 2003 to Class 11, Class 12, B.Com, CA, CS and CMA students.
We have solved all the practical questions in this book and explained them Step by Step in detail with clear working notes.
Also, we have followed the proper format and workings which are required as per CBSE Guidelines. Just follow our presentation of solutions and score good marks in the Accountancy Board Exam.
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