Fundamentals Of Partnership And Goodwill CBSE Questions & Answers

L, M and N are partners in a firm sharing profit and loss in the ratio of 2:3:5. Their fixed capitals were Rs.1500000, Rs.3000000 and Rs.6000000 respectively. For the year 2011 interest on capital was credited to them \(@{\text{ 12}}\% \) instead of 10 \(%\). Pass the necessary Journal entry

A,B and C are partner in a firm. They have introduced Rs.50000, Rs.40000 and Rs.30000 resp. and agreed to distribute profit or loss in the ratio of their capital. Firm earned profit of Rs.60000 during the year. Distribute profit among partners .Pass journal entry

A, B and C arte partners. They admit D and guarantee that his share of profit will not be less than Rs.20,000. Profits to be shared 4:3:3:2 respectively. Total profits were Rs.96,000. It was agreed that excess payable to D over his share will be borne by A, B and C in the ratio of 3:2:1.Calculate share of profit for each partner.

A, B and C are partners in a firm sharing profits and losses in the ratio of 3:2:1 with a guarantee of minimum profits to C for Rs.15,000. Total profits of the firm for the year ended on December 31, 2012 amounted Rs.1,20,000. Any excess payable to C on account of such guarantee shall be borne by B. Prepare a profit and loss appropriation account to show the distribution of profits as per terms of partnership deed. Profit and Loss Appropriation Account For the year ending on 31ST March, 2012

Partners have decided to provide jobs to the women of economically backward society. What values cab be depicted from the decision of partners.

X, Y and Z are partners in a firm who share profits in the ratio of 2:3:5. The firm earned a profit of Rs.1,50,000 for the year ended December 31,2004. The profit by mistake was distributed among X, Y and Z in the ratio of 3:2:1 respectively. This error was noted only in the beginning of the next year. Pass necessary Journal entry to rectify the error

Values Involved in questions of past adjustments:

Suppose cash withdrawn by Rohit from his partnership firm for personal use was 7000.The rate of interest is 12\(%\) p.a. Calculate interest on drawings on average basis

Calculate the average profits. The average profits of last four years’ profits. The profits of the last four years were:

Calculate goodwill at twice the weighted average profits of last four years’ profits. The profits of the last four years were:

Business showed that the capital employed on January 1, 2007 was Rs. 4,50,000 and the profits for the last five years were as follows: 2007-Rs. 40,000; 2008 -Rs. 50,000; 2009- Rs. 60,000; 2010 Rs. 70,000 and 2011 -Rs. 80,000.You are required to find out the value of goodwill, based on three years’ purchase of the super profit of the business given that the normal rate of return is 10\(%\).

A firm earns Rs.65,000 as its average profits. The usual rate of earning is 10\(%\). The total assets of the firm amounted to Rs.6,80,000 and liabilities are Rs.1,80,000. Calculate the value of goodwill.

Verma Brothers earn a profit of Rs. 90,000 with a capital of Rs. 4,00,000. The normal rate of return in the business is 15\(%\). Use Capitalization of super profit method to value the goodwill.

A firm earned net profits during the last three years as below. The capital investment of the firm is Rs.120000. A fair return on the capital having regard to the risk involved is 10\(%\). Calculate the value of goodwill on the basis of three years purchase of the average profit for the last three year

The average net profits expected of a firm in future are Rs.68,000 per year and capital invested in the business by the firm is Rs.350000. The rate of interest expected from Capital invested in this class of business is 12\(%\). The remuneration of the partners is Estimated to be Rs.8,000 for the year. You are required to find out the super profit