partnership (cpt)

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

23 August 2010 2. The profits and losses for the last years 2001-2002 lossses Rs10000;2002-03 losses Rs2500;2003-04 profits Rs. 98ooo and 2004-05 profits Rs76000.The average capital employed in the business is Rs200000.The rate of interest expected from capital invested is 12%.The remuneration of partners is estimated to be Rs. 1000 per month .Calculate the value of goodwill on the basis of four years purchase of super profits based on the annuity of the four years.Taking discounting rate as 10%.
3. Amit and anil are partners of a partnership firm sharing profits in the ratio of 5:3 respectively .Atul was entered on the following terms.Atul would pay rs50000 as capital and Rs. 16000 as goodwill for 1/5th share of profits.Machinery would be apppreciated by 10%(book value rs80000) and building would be depreciated by 20%(200000).Unrecored debtors rs1250 would be brought into books now and a creditors amounting to rs2750 died and need not to pay anything to its estate .Find distribution of profit/loss on revalution between amit anil and atul.

shakuntala chhangani

shakuntala chhangani (Expert)
Follow

25 September 2010 Hi, for ur 2) question check
www.caclubindia.com/forum/help-anybody-pls--79340.asp
3) since atul is a new partner, he will not bear/share revaluation results. It will be distributed between amit and anil in their old ratio of 5:3. profit on machinery is 8,000, loss on building is 40,000, profit due to increase in dr. is 1,250 and profit due to death of crs. is 2,750. thus there is net revaluation loss of Rs 28,000 to be borne by Amit and Anil as 17500 and 10500 respectively.
Regards, CA Shakuntala Chhangani