Question : In the partnership agreement between R Sand T who were sharing profits in the ratio of 5 : 3 : 2, the goodwill was to be valued on the death of any partner on the basis of such partner’s share of 2 year’s profits calculated on the average of 5 year’s profits Immediately preceding the year of death less 10%. The firm’s profits were 2014 Rs. 10,000; 2015 Rs.30,000; 2016 Rs.43,000 and in 2017 and 2018 losses of Rs.6,000 and Rs.4,000 respectively. The deceased partner’s share of profits for the period of his life-time in the year of death was to be based on the average of the profits of the previous 3 years plus 10%. R died on 31st August, 2018. His Capital A/c showed a credit of Rs.50,000 on 1st April, 2018 and he had drawn Rs.4,000 since that date.
Q. R’s share of Goodwill is
Option 1: Rs 13,280
Option 2: Rs 13,140
Option 3: Rs 13,000
Option 4: None of the above
Correct Answer: Rs 13,140
Solution : Answer = Rs 13,140
Total Profit of Last 5 years = 10,000 + 30,000 + 43000 + (6000)+(4000) = 73000 Average Profit = 73000/5 = 14600 = 1460 Less 10% = 13140 Goodwill = 13140 *2 = 26280 A's Share = 26,280* 5/10 = 13140 Hence, the correct option is 2.
Question : In the partnership agreement between R Sand T who were sharing profits in the ratio of 5 : 3 : 2, the goodwill was to be valued on the death of any partner on the basis of such partner’s share of 2 year’s profits calculated on the average of 5 year’s
Question : P, R and S are in partnership sharing profits 4/8, 3/8 and 1/8 respectively. It is provided under the partnership deed that on the death of any partner his share of goodwill is to be valued at one-half of the net profits credited to his account during the last 4 completed
Question : Ram Mohan and Anil were partners in a firm sharing profits in a 2:2:1 ratio. The firm closes its books on 31st March every year. Mohan died on 24-8-2017. On Mohan’s death, the goodwill of the firm was valued at Rs.75,000. The partnership deed provided that on
Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile