CBSE (Central Board of Secondary Education) Class-12 Accountancy: Questions 176 - 178 of 216

Choose Programs:

🎯 216 Questions (& PYQs) with Full Explanations (2024-2025 Exam)

Rs. 250.00 -OR-

3 Year Validity (Multiple Devices)

CoverageDetailsSample Explanation

Help me Choose & Register (Watch Video) Already Subscribed?

Question 176

Write in Brief One Liner▾

Name two methods for valuation of goodwill in case of partnership firm.

Edit

Question 177

Write in Short Short Answer▾

what is contingent liability? give example of it.

Edit

Question 178

Describe in Detail Subjective▾

A, Band C were partners in a firm. sharing profits in the ratio of 5: 3: 2. On 31st March, 2005 their Balance Sheet was as under:

Shows Available Balance of Assets and Liabilities
LiabilitiesAssets
Creditors7,000Buildings20,000
Reserve10,000Machinery30,000
Accounts:Stock10,000
A30,000Patents6,000
B25,000Debtors8,000
C15,00070,000Cash13,000
87,00087,000

A died on 1st October, 2005. It was agreed between his executors and the remaining partners that

a. Goodwill be valued at 2 years՚ purchase of the average profits of the previous five years, which were 2001: ₹ 15,000; 2002: ₹ 13,000; 2003: ₹ 12,000; 2004: ₹ 15,000 and 2005: ₹ 20,000.

b. Patents be valued at ₹ 8,000; Machinery at ₹ 28,000; Buildings at ₹ 30,000.

c. Profit for the year 2005 - 06 is taken as having accrued at the same rate as the previous year.

d. Interest on capital be provided at 10% p. a.

e. A sum of ₹ 11,500 was to be paid to his executors immediately.

Prepare A՚s Capital Account and his executors՚ account at the time of his death.

Edit

Explanation

Shows Capital of Partner A
ParticularsParticulars
Executor՚s A/c61,500By Balance b/d30,000
By Reserves5,000
By B՚s Capital A/c9,000
By C՚s Capital A/c6,000
By Revaluation A/c5,000
By Profit & Loss Suspense A/c5,000
By Interest on Capital A/c1,500
61,50061,500
Balance of a՚s Capital is Carry Forward in This
ParticularsParticulars

… (32 more words) …