How the goodwill is valued under the Capitalisation of Super Profit method? Post category:Accountancy Reading time:1 mins read SOLUTION Goodwill = Super Profit x 100 / Normal Rate of Return 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 PostEnumerate two main steps involved in valuing the goodwill according to super profit method. Next PostState the ratio in which the partners share profits or losses on revaluation of assets and liabilities, when there is a change in profit sharing ratio amongst existing partners? You Might Also Like Mohan, Vijay and Anil are partners, the balances of their Capital Accounts being Rs. 30,000, Rs. 25,000 and Rs. 20,000 respectively. In arriving at these amounts profit for the year ended 31st March, 2019, Rs. 24,000 had already been credited to partners in the proportion in which they shared profits. Their drawings were Rs. 5,000 (Mohan), Rs. 4,000 (Vijay) and Rs. 3,000 (Anil) during the year. Subsequently, the following omissions were noticed and it was decided to rectify the errors: (a) Interest on capital @ 10% p.a. (b) Interest on drawings: Mohan Rs. 250, Vijay Rs. 200 and Anil Rs. 150. Make necessary corrections through a Journal entry and show your workings clearly. July 22, 2022 A, B and C are in partnership sharing profits and losses in the proportions of 1/2, 1/3 and 1/6 respectively. On 31st March, 2019, they decided to dissolve the partnership and the position of the firm on this date is represented by the following Balance Sheet: July 26, 2022 Name any two items that can be disclosed under ‘Intangible Assets”. September 30, 2022 Leave a Reply Cancel replyYou must be logged in to post a comment.
Mohan, Vijay and Anil are partners, the balances of their Capital Accounts being Rs. 30,000, Rs. 25,000 and Rs. 20,000 respectively. In arriving at these amounts profit for the year ended 31st March, 2019, Rs. 24,000 had already been credited to partners in the proportion in which they shared profits. Their drawings were Rs. 5,000 (Mohan), Rs. 4,000 (Vijay) and Rs. 3,000 (Anil) during the year. Subsequently, the following omissions were noticed and it was decided to rectify the errors: (a) Interest on capital @ 10% p.a. (b) Interest on drawings: Mohan Rs. 250, Vijay Rs. 200 and Anil Rs. 150. Make necessary corrections through a Journal entry and show your workings clearly. July 22, 2022
A, B and C are in partnership sharing profits and losses in the proportions of 1/2, 1/3 and 1/6 respectively. On 31st March, 2019, they decided to dissolve the partnership and the position of the firm on this date is represented by the following Balance Sheet: July 26, 2022