DK Goel Solutions Q 8 Chapter 2 Change in Profit Sharing Ratio Class 12 CBSE [2023-24]
Step-by-step solution of Question 8, Chapter 2 Change in Profit-Sharing Ratio Among the Existing Partners, DK Goel Class 12 Accountancy 2023-24 for the CBSE Board.
Question 8
Following information is available about the business of a firm :
(i) Profits : In 2019, ₹ 40,000; In 2020, ₹ 50,000; In 2021, ₹ 60,000, (ii) Non-recurring income of ₹ 1,000 is included in the profits of 2020, (iii) Profits of 2019 have been reduced by ₹ 6,000 because goods were destroyed by fire, (iv) Goods have not been insured but it is thought to insure them in future. The insurance premium is estimated at ₹ 400 per year, (v) Reasonable remuneration of the proprietor of business is ₹ 6,000 per year, but it has not been taken into account for calculation of above mentioned profits, (vi) Profits of 2021 include ₹ 5,000 income on investment.
Goodwill is agreed to be valued at two year’s purchase of the weighted average profits of the past three years. The appropriate weights to be used are :—
2019 :— 1; 2020 :— 2; 2021 :— 3.
Solution
All questions of Chapter 2
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About this solution
This is Chapter 2 Change in Profit Sharing Ratio 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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