Jeevan and Kavi were partners in a firm with capitals of ₹12,00,000 and ₹15,00,000 respectively. Annual salary of the partners was ₹2,00,000 each. The market rate of interest was 10%. During the previous three years the profits were ₹8,00,000, ₹9,00,000 and ₹7,00,000. The goodwill of the firm is to be valued at 2 year’s purchase … Read more
Abha and Sara were partners in a firm. Their capitals were : Abha ₹3,00,000 and Sara ₹2,00,000. The normal rate of return in similar business is 10%. The profits of the firm of Abha and Sara for the last three years were: 2021-22 ₹60,000 2022-23 ₹90,000 And 2023-24 ₹1,20,000 Calculate goodwill of the firm … Read more
The capital of the firm of Rajat and Karan is ₹15,00,000 and the market rate of interest is 12%. Annual salary of Rajat and Karan is ₹20,000 and ₹30,000 respectively. The profits for the last three years were ₹2,40,000, ₹2,80,000 and ₹3,20,000. Goodwill of the firm is to be valued on the basis of two … Read more
Asha and Babita were partners in a firm. Their capitals were ₹ 15,00,000 and ₹ 10,00,000 respectively. The profits of the last four years were:₹ 2019 – 20 2,50,000 2020 – 21 (50,000) 2021 – 22 8,00,000 2022 – 23 5,00,000 The closing stock for the year 2022 – 23 was undervalued by ₹ 1,00,000. … Read more
Asha and Babita were partners in a firm. Their capitals were ₹ 15,00,000 and ₹ 10,00,000 respectively. The profits of the last four years were: ₹ 2019 – 20 2,50,000 2020 – 21 (50,000) 2021 – 22 8,00,000 2022 – 23 5,00,000 The closing stock for the year 2022 – 23 was undervalued by … Read more
Sunny and Rohan were partners in a firm sharing profits and losses in the ratio of 2: 1. Their books showed that the capital employed on 31st March, 2023 was Rs. 7,00,000. The average profits earned by the firm were Rs. 90,000. Calculate the value of goodwill on the basis of 5 years purchase of … Read more
Aayush and Krish are partners sharing profits and losses equally. They decided to admit Vansh for an equal share in the profits. For this purpose, the goodwill of the firm was to be valued at four years purchase of super profits. The balance sheet of the firm on 31.3.2023 before admission of Vansh was as … Read more
Rishi and Suman were partners in a firm. Their capitals were: Rishi Rs. 1,20,000 and Suman Rs. 80,000. The normal rate of return in similar business is 12%. The profits of the last four years were: Year Rs. 2019 20 33,000 2020 21 22,000 2021 22 31,000 2022 23 34,000 Calculate goodwill of the firm … Read more
Pearl and Ruby were partners in a firm with a combined capital of Rs. 2,50,000. The normal rate of return was 10%. The profits of the last four years were as follows: Rs. 2019 20 35,000 2020 21 25,000 2021 22 32,000 2022 23 33,000 The closing stock for the year 2022 23 was overvalued … Read more
On 1st April, 2023, a partnership firm had assets of Rs. 2,00,000 including cash of Rs. 6,000 and bank balance of Rs. 14,000 accounts showed a balance of Rs. 1,90,000 and reserves constituted the rest. If the normal rate of return is 10% and the goodwill of the firm is valued at Rs. 60,000 at … Read more