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Question 17 Chapter 6 of +2-Part-1
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17. (Amount of Goodwill Credited to Deceased Partner) P, R, and S are in partnership, sharing profits in the ratio of 4: 3: 1 respectively. It is provided in the partnership deed that, on the death of any partner, his share of goodwill is to be valued at half the profits credited to his account during the previous four completed years.
R dies on 1st January 2017. The firm’s profit for the last four years, 2013- Rs. 1,20,000; 2014- Rs. 80,000 ; 2015- Rs.40,000: 2016-80,000. Determine the amount that should be credited to R in respect of his share in goodwill.
The solution of Question 17 Chapter 6 of +2 Part-1: –
Total profits of the previous 4 years
| 2013 | = | 1,20,000 |
| 2014 | = | 80,000 |
| 2015 | = | 40,000 |
| 2016 | = | 80,000 |
| = | 3,20,000 |
| R’s share in firm’s total profit | = | 3 |
| 8 |
| Total profits credited to R in previous 4 years | = | 3,20,000 | x | 3 |
| 8 | ||||
| = | Rs 1,20,000 |
| Total profits credited to R in previous 4 years =3,20,000×38=Rs 1,20,000 | = | 1,20,000 | x | 1 |
| 2 | ||||
| = | Rs 60,000 |
Comment if you have any questions.
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Also, Check out the solved question of previous Chapters: –
Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution
- Chapter No. 1 – Accounting Not for Profit Organisations
- Chapter No. 2 – Partnership Accounts – I (Introduction)
- Chapter No. 3 – Partnership Accounts – II (Goodwill: Nature and Valuation)
- Chapter No. 4 – Partnership Accounts – III (Reconstitution of Partnership)
- Chapter No. 5 – Partnership Accounts – IV (Admission of A Partner)
- Chapter No. 6 – Partnership Accounts – V (Retirement and Death of A Partner)
- Chapter No. 7 – Partnership Accounts – VI (Dissolution of Partnership Firm)
- Chapter No. 8 – Company Accounts (Share Capital)
- Chapter No. 9 – Company Accounts (Issue of Debentures)
- Chapter No. 10 – Company Accounts (Redemption of Debentures)
Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution
- Chapter No. 1 – Financial Statements of a Company
- Chapter No. 2 – Financial Statement Analysis
- Chapter No. 3 – Tools of Financial Statement Analysis- Comparative and Common Size
- Chapter No. 4 – Ratio Analysis
- Chapter No. 5 – Cash Flow Statement
Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication
