Give two characteristics of Goodwill. Post category:Accountancy Reading time:1 mins read SOLUTION (i)It is an intangible asset not a fictitious asset. It is a valuable asset; (ii) It is helpful in earning excess profits. Please Share This Share this content Opens in a new window X Opens in a new window Facebook Opens in a new window Pinterest Opens in a new window LinkedIn Opens in a new window Viber Opens in a new window VK Opens in a new window Reddit Opens in a new window Tumblr Opens in a new window Viadeo Opens in a new window WhatsApp Read more articles Previous PostDefine Goodwill. Next PostHow the goodwill is valued under the average profit’s method? You Might Also Like Tom and Harry were partners in a firm sharing profits in the ratio of 5: 3. During the year ended 31st March, 2015 Tom had withdrawn Rs. 40,000. Interest on his drawings amounted to Rs. 2,000. Pass necessary Journal entry for charging interest on drawings assuming that the capitals of the partners were fluctuating. (AI 2016) October 7, 2022 What is meant by ‘Share Application Money Pending Allotment’? September 30, 2022 A, B and C are partners in a firm. Their profit-sharing ratio is 2: 2: 1. C is guaranteed a minimum of Rs. 1,00,000 as share of profit every year. Any deficiency arising on that amount shall be met by B. The profits for the two years ended 31st March, 2021 and 2022 were Rs. 4,00,000 and Rs. 6,00,000 respectively. Prepare Profit and Loss Appropriation Account for the two years. October 11, 2022 Leave a Reply Cancel replyYou must be logged in to post a comment.
Tom and Harry were partners in a firm sharing profits in the ratio of 5: 3. During the year ended 31st March, 2015 Tom had withdrawn Rs. 40,000. Interest on his drawings amounted to Rs. 2,000. Pass necessary Journal entry for charging interest on drawings assuming that the capitals of the partners were fluctuating. (AI 2016) October 7, 2022
A, B and C are partners in a firm. Their profit-sharing ratio is 2: 2: 1. C is guaranteed a minimum of Rs. 1,00,000 as share of profit every year. Any deficiency arising on that amount shall be met by B. The profits for the two years ended 31st March, 2021 and 2022 were Rs. 4,00,000 and Rs. 6,00,000 respectively. Prepare Profit and Loss Appropriation Account for the two years. October 11, 2022