The profits and losses for the years ending 31st March were: 2010 Rs. B and C were partners sharing profits and losses in the ratio of 7:3:2 From 1st April 2015, they decided to share profits and losses in the ratio of 8:4:3 Goodwill is to be valued at the average of three year's profits preceding the date of change in profit sharing ratio. Also prepare the revised Balance Sheet. 8,00,000 – Rs. Rs. (v) A provision for doubtful debts be created @ 5% on Sundry Debtors. Question 6. been reduced by Rs. Average Profits are Rs. 12,000. 42,000 × 4 = Rs 1,68,000. The capital of the firm of Anuj and Benu is Rs.10,00,000 and the market rate of interest is 15%. A, B and C are partners in a firm sharing profits in the ratio of 3:2:1. 36,000 + Rs. 6,00,000 + Rs. 5,00,000 – Rs. The firm had a balance of Rs. With effect from 1st April, 2016 they agreed to share profits in the ratio of 1 : 2 : 3. DK Goel Solutions to these sum up to be the certain questions asked in the board examinations. All questions and answers from the Accountancy Dk Goel 2018 Book of Class 11 Commerce Accountancy Chapter 13 are provided here for you for free. 40,000. 34,000. Investment Fluctuation Reserve 54,000 Investments (at cost) 6,00,000. Calculate each partner's gain or sacrifice due to change in ratio. Calculation of Sacrifice or Gaining Ratio =. Approx. The new profit sharing ratio between A, B and C will be 4: 3:2. Average rate of return in the same business is 12%. The book includes Multiple Choice, short-answer type, Value-based, objective type and practical questions at the end of every chapter so that students may examine their understanding of the chapter. Capital Required:- The amount of capital required for a business will also influence the value of goodwill. Question 39. Profits to be weighted 1, 2, 3, 4 and 5, the greatest weightage to be given to last year. 2,000 were not likely to be claimed and hence should be written off. The profits and losses of the preceding five years ending 31st March are: Profits: 2012: Rs. 15,000. Average profit of the firm is Rs. Question 27. Super Profit Method:- In this method goodwill is calculated on the basis of surplus profit earned by a firm in comparison to average profits earned by other firms. 2,00,000 – Rs. A, B and C are partners sharing profits in the ratio of 5 :3: 2.It is now agreed that they will share profits in the ratio of 5: 4: 3. Such an adjustment is made by passing an adjustment entry wherein B’s Capital Account will be debited and A’s Capital Account will be Credited with Rs. Stock be valued at Rs. The above-provided solutions are considered to be the best solution for ‘DK Goel Solutions Accountancy Class 11 Chapter 3 – “Accounting Principles’. On what occasions does the need for valuation of goodwill arise? Question 15. For this purpose the following revaluations were made : (i) Furniture be taken at 80% of its value. Question 56. Pass necessary Journal entries for the above transactions in the books of the firm. A large number of questions based on Incomplete Information have been given at the end of every chapter. 2,00,000, Four years average profit is more than 5 years average profit. For this purpose they decided that : (1) Fixed assets are to be depreciated by 10%. The total assets of the firm are Rs. The CBSE Solutions for DK Goel accountancy has been created by accounts teachers are StudiesToday.com. Question 1. 40,000 respectively. 75,000 which includes undervaluation of stock of Rs.5,000 on an average basis. solution, icse-allied publishers 2,000. What adjustments are required at the time of reconstitution of a partnership firm? (ii) When they don't want to transfer general reserve in their capital accounts and prefer to record an adjustment entry for the same. 4,50,000 – Rs. X,Y and Z are partners sharing profits and losses in the ratio of 7:5:4. 84,000 – Rs. [Ans. 20,000 annually. 9,000 in the profit and loss account and a Workmen Compensation Reserve of Rs. These solutions for Class 11 are outlined keeping in mind the latest CBSE syllabus, hence possessing a big chance of appearing in the board exams. 41,000 + Rs. (ii) Four year’s purchases of super profits: Value of Goodwill at 4 year’s Purchases of Super profit = Rs. It was decided that with effect from 1st April, 2015 the profit sharing ratio will be 5 : 3. It is a scoring subject and covers a professional pathway to several other related professions such as CMA, CA, and ICWA. In the same business a 10% return is generally expected. 80,000 + Rs. Depreciation was charged on Machinery 20% p.a. Question 2. Chapter wise DK Goel Class 11 Accountancy Exercises with Solutions … Priya was of the view that it should be Credited to Revaluation Account whereas Rani was of the view that it should be Credited to the Capital accounts in equal proportion. Case (iv) If the market value of Investments is Rs. Find out the value of goodwill on the basis of: (i) Four year's purchase of average profits. Weightage to each topic has been given as per the marks allotted to it by the CBSE. With effect from 1st April 2019, they agreed to share the profits equally. You are required to calculate C's share of goodwill. 60,000; 2015 Rs. However, they do not want to disturb the reserves. Answers and hints to answer the questions have been provided at the end of every question. Question 26. 6,00,000 and normal rate of return is 10%. 6,000 per year, but it has not been taken into account for calculation of above mentioned profits. Class 11 DK Goel Solutions will help you to revise complete Syllabus and Score More marks. ), 2013 80,000, 2014 1,00,000, 2015 1,10,000, 2016 1,50,000. 25,000. It is now agreed that they will share future profits in the ratio of 3:3:4. Case (ii) If the market value of Investments is Rs. 4,00,000 including cash of Rs. 3.) Also Check: DK Goel Solution for Chapter 4 Process and Bases of Accounting. Access NCERT Solutions for Class 12 Accountancy. If it was recorded at the time of actual payment, the partners will bear the loss in 2:1. Case (iii) If a claim on account of workmen's compensation is estimated at Rs. Books of Accounts of the firm revealed that: (i) Closing Stock as on 31st March, 2015 was overvalued by Rs. 40,000 each were purchased and. You are required to pass a single journal entry for the treatment of goodwill. What is meant by number of years' purchase at the time of valuation of goodwill? (ii) Land & Building will be appreciated by 20%. A firm is reconstituted on the occasions of :-. (A) A, B, C and D are partners in a firm sharing profits and losses in the ratio of 2:2:1:1 They decided to share future profits and losses in the ratio of 3:2:2:3. 72,000. Mention the occasions on which reconstitution of partnership firm can take place.Solution 1. 32,000 + Rs. 50,000. Question 17. 10,000. Show the accounting treatment under the following alternative cases : Case (i) If there is no other information. Make adjustment by one single journal entry. 60,000 + Rs. Question 36. 1,50,000. (2) Three year's purchase of super profits. Click here to download NCERT Solutions for questions of Class 12 Accountancy NCERT Book. 60,000 was written off as loss in Profit & Loss Account. Question 61. For this purpose Current Accounts will be opened. 80,000, 2018-19 Rs. 10,000 and the balance constituted the reserve. Question 37. 30,000.]. A, B and C are partners sharing profits equally. Find out the capital employed from the following information: 2017-18 Rs. Solution 2. on diminishing balance method. A firm is reconstituted on the occasions of :-1.) Question 57. For this purpose it was agreed that: (i) The goodwill of the firm should be valued at Rs. Question 30. DK Goel Solutions Class 12 Part 1. 20,000 on that date. Calculate the value of goodwill. Goodwill is valued at Rs. 52,000, Rs. Calculate the value of goodwill on the basis of three year’s purchase of weighted average profits. 50,000 Profit, 3rd year Rs. Of super profits. They prepared a Revaluation Account on this date and an unrecorded asset (Motorbike) worth Rs. Hari, Kunal and Uma are partners in a firm sharing profits and losses in the ratio of 5:3:2. Click... Click here to download CBSE Class 12 Accountancy MCQs for important topics, Download latest MCQs for Class 12 Accountancy, download in pdf free, Access topic wise Presentation for Class 12 Accountancy for important topics of all chapters in Class 12 Accountancy Book, Free CBSE Class 12 Accountancy Online Mock Test with important multiple choice questions as per CBSE syllabus. Pass a single journal entry to record the change. Volume 2 Covers of Partnership Accounts whereas Volume 2 has Company Accounts. Download solutions... Download latest 2021 Sample Papers for Class 12 Accountancy as per CBSE NCERT pattern and syllabus. Total Profit = Rs. 30,000; 2013 Rs. 60,000 at four year purchase of super profit, find the average profit of the firm. The value of the liabilities is Rs. Distinguish between average profit and super profit method of valuation goodwill. 20,000 and B will gain Rs. the partner whose share has increased as a result of change) to the sacrificing partner (i.e. Question 15. 50,000) + Rs. 24,000, (ii) Advertisement Suspense Account Rs. 3,00,000 + (Rs. A and B are partners in a firm sharing profits in the ratio of 3:2. Prepare Revolution Account, Partners' Capital Accounts and the Balance Sheet of the reconstituted firm. 10,000. 1,00,000 - Rs. They agree to admit D for equal share. 4,50,000. (iii) Outstanding expenses were not payable anymore. Question 53. With effect from 1st April 2019, they agreed to share the profits equally. 5,00,000 including cash of Rs. 25,000. Solution 14 Reserves and accumulated profits are credited to the capital accounts of all partners in their old profit sharing ratio because they have been set apart out of the profits earned in the period before change. Reserves appear in the books at Rs. Following information is available about the business of a firm : (i) Profits : In 2013, Rs. (ii) To adjust the capitals of the partners according to new profit sharing ratio by opening partners current accounts. These solutions for Class 12 are outlined keeping in mind the current CBSE 48,000. Question 34. 2,000. We provide all the DK Goel Solutions at free of cost on our website. If the goodwill is valued at Rs. 4,00,000. For this purpose it was agreed that: (a) Goodwill of the firm was valued at Rs. Following is an extract of their Balance Sheet as at 31st March, 2016: Liabilities Rs. (iii) Computers (book value of Rs. 4,00,000. However, Anand was of the opinion that it should be credited to the Capital accounts in the ratio of 2:1. 1,60,000 and 2015 Rs. The profits shown by Y's business for the last four years were : Year ended (Rs. 60,000 and Rs. 5,000. Pass a single journal entry for the treatment of goodwill. P, Q and R are partners sharing profits equally. 60,000 each. When the firm is amalgamated with another firm. You are required to give the adjusting entry. 72,000 Profit. 15,000. The remuneration of all the partners during this period is estimated to be Rs.1,00,000 per annum. 4,00,000 + Rs. 5,00,000 – Rs. 1,00,000. Free PDF download of DK Goel Solutions for Class 12 solved by Expert Teachers on Vedantu.com. Question 19. Question 18. L, M and N are partners sharing profits and losses in equal proportion. The profit for the three years were Rs. 3,00,000 and reserves constituted the rest. 12,000 × 4 = Rs. (i) Value of Goodwill on the basis of two year’s purchase of Super profits: Goodwill = Capitalised Value of Average Profit – Net Assets. April 1, 2019. The Utsav will involve storytelling, folklores, & dialogues with eminent personalities, quizzes, display of traditional... BRICSMATH.COM is an annual International Online Competition in Mathematics, for students of classes I – XII of 07 BRICS countries (Brazil, Russia, India, China and South Africa, Indonesia and Vietnam). The profits for the years ending 31st March 2013, 2014 and 2015 were Rs. A. Pass an entry to give effect to the above and prepare the revised balance sheet. 50,000; Loss 2014 Rs. 3,00,000. Their balance sheet as at 31st March 2016 stood as follows: Partners decided that with effect from 1st April 2016, they will share profits and losses in the ratio of 3 : 2 : 1. 6,000 because goods were destroyed by fire, (iv) Goods have not been insured but it is thought to insure them in future. 60,000 in the books of the firm. The partner's capital accounts showed a balance of Rs. (iv) Create provision for doubtful debts for Rs. 90,000, partner's capital accounts showed a balance of Rs. The following information relates to a partnership firm : (a) Profits/Losses for the last six years : 1st year Rs. Some of the special features of the book are : On March 31, 2016, their Balance Sheet showed a general reserve of Rs. 1,50,000, Rs. The following information relates to a partnership firm: (a) Sundry Assets of the firm Rs. Partners agreed that altered values are not to be recorded in the books and they also do not want to distribute the general reserve. The appropriate weights to be used are : 2013 :-1; 2014: -2; 2015: -3. Outside Liabilities Rs. 75,000 in the Profit and Loss Account and a balance of Rs. Annual salary to the partners is Rs. The goodwill of the firm on its reconstitution was valued at Rs. Also download collection of CBSE books... Download Class 12 Accountancy assignments. Here the negative value of is gaining and positive value is sacrificing. The profits were: 2011-12 40,000, 2012-13 10,000 (Loss), 2013-14 80,000 (Loss), 2014-15 1,20,000, 2015-16 1,40,000. Give reason. Building 8,00,000, Plant and Machinery 3,20,000, Stock 2,60,000, Creditors 84,000. 30,000. 17. Pass necessary journal entries for the above. Chapter wise Class 11 DK Goel solutions are made in such a way that students can easily … Give the necessary journal entry. With effect from1st April, 2019 they agreed to share profits in ratio of 4:3. (ii) Repairs to Machinery Rs. The average profit earned by a firm is Rs. The intend of this article is to present before you the 5 most efficient tips to facilitate the students to revise the entire course for the Annual School and Board Examination. Pass necessary journal entries on reconstitution of the firm. Calculate the individual partner’s gain or sacrifice due to change in ratio. From 1st April, 2017, they decided to share profits in the ratio of 3:4:5. For this purpose the goodwill of the firm is valued at the total of preceding three year's profits. (iv) An item of Rs. Their Balance Sheet as at 31 st March, 2016 stood as follows: They decided that with effect from 1st April, 2016, they will share profits and losses in the ratio of 2:1. Question 23. If a business has no anticipated excess earning, it will have no goodwill. Question 1. The intend of this article is to let us know the significance of writing within the prescribed word limit while attempting the CBSE Board Examination. In this method, goodwill is calculated on the basis of the number of past year profits. Class 11 Accountancy Solutions by DK Goel chapter-wise are available which are free for all users to download as a PDF or to view online. 4,00,000 = Rs. DK Goel Solutions have been one of the most preferred book which is used by commerce students of Class 11 and Class 12 for Accountancy. 20,000. The firm has capital investment of Rs. Partners decided to record the revised values in the books. 2,00,000 per year. DK Goel Accountancy Class 12 Solutions Chapter 1 Financial Statements of Companies (As per Schedule III) which is outlined by expert Accountancy teachers from the latest version of DK Goel Accountancy Class 12 textbook solutions. The purchasing or gaining partner must compensate the sacrificing partner by paying the proportionate amount of goodwill. How will you deal with goodwill when there is change in the profit sharing ratio among the existing partners? DK Goel Solutions Accountancy furnishes a wide range of solutions that certainly supports the students to understand, analyse and solve them. The questions provided in DK Goel (2019) Books are prepared in accordance with CBSE, thus holding higher chances of appearing on CBSE question papers. Table Of Contents dk goel accounts book class 12 solutions pdf. Solution 12 At the time of change in the profit sharing ratio, there are Reserves or Accumulated profits/losses existing in the books of the firm, these should be transferred to the Partner’s Capital Accounts or to Current Accounts in their old profit sharing ratio. Question 12. Solution 8 Number of year purchase is used to calculate the value of goodwill in average profit method and super profit method at the time of valuation of goodwill. DK Goel Solutions Class 11 and 12 are precise, clear and easy to understand which serves as a catalyst for the preparation purposes. If they are not adjusted at present, they will get adjusted later in their new profit sharing ratio which will result in loss to the sacrificing partner and gain to the gaining partner. 48,000. A large number of value-based questions have been provided at the end of every chapter. Goodwill is agreed to be valued at two year's purchase of the weighted average profits of the past three years. Question 54. Question 4. Total assets of the firm are Rs. (iii) Creditors amounting to Rs. A will lose Rs. 80,000, Rs. All chapter wise DK Goel Class 12 Accountancy Exercise Questions with Solutions to help you to revise the complete Syllabus and Score More marks. X purchased the business of Y from 1st April, 2019. Question 46. Charu and Dinesh have been sharing profits in the ratio of 3 : 1. 2.) 2018, their Balance Sheet was as follows: From April 1, 2018, they decided to share future profits in the ratio of 1:2:3. 1,90,000. 2.) 5,00,000 + Rs. Assets Rs. 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