V K Accountancy Class 12-2021-22 - NPO and Partnership-Solution Solutions Chapter No. 3 Change in Profit Sharing Ratio among Existing Partners VK Publication

Question 11 Chapter 3 of Class 12 Part - 1

11. On 1st April, 2018, a partnership firm had assets: Land-Rs. 60,000; Furniture-Rs. 10,000; Debtors- Rs. 5,000; Bills Receivable- Rs. 10,000; Cash- Rs. 15,000. The partners' capital accounts showed a balance of Rs. 85,000 and the rest contributed reserves. If the normal rate of return is 10% and the goodwill of the firm is valued at Rs 30,000 at six years' purchase of super profits, find the average profits of the firm.

The solution of Question 11 Chapter 3 of Class 12 Part - 1: -

Capital Employed = Total Assets - External Liability
= ( Land+ Furniture+ Debtors+ Bills Receivable+Rent Paid in Advance+ Cash)- External Liabilities
= (60,000+10,000+5,000+10,000+15,000)-NIL = Rs. 1,00,000
Normal Profit= 1,00,000 ×10/100= Rs. 100,000
Goodwill= Super Profit x Number of Years’ purchase
30,000= Super Profit x 6
Super Profit= Rs. 5,000
Average Profit=Super Profit+ Normal Profit
= 5,000+10,000= Rs. 15,000

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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

 

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[caption id="attachment_6900" align="aligncenter" width="300"] Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms[/caption]