please solve this
Thanks
Dear Student
Regards
| David's Capital A/c | |||||
| Date | Particulars | Amount (in Rs) | Date | Particulars | Amount (in Rs) |
| Bal B/d | 20,000 | ||||
| Interest on Drawings A/c | 60 | Salary to David A/c | 14,400 | ||
| Vinod's Capital A/c | 3,000 | ||||
| David's Executors A/c | 43,490 | Mridul's Capital A/c | 3,000 | ||
| Profit and Loss suspense A/c | 2,250 | ||||
| Interest on Capital A/c | 900 | ||||
| 43,550 | 43,550 | ||||
| Average Profit | ||
| Sum of Preceding 3 Years Profit | (21,200 - 3,200 + 9,000) | 27,000 |
| Average Profit | (21,200 - 3,200 + 9,000)/3 | 9,000 |
| Calculation of Goodwill | ||
| Average Profits | 9,000 | |
| Goodwill at 2 Years Purchase | (9,000 x 2) | 18,000 |
| Share of David | (18,000 x 1/3) | 6,000 |
| Gaining Ratio | 1:1 | |
| Goodwill Adjustment for Karan | ||
| Vinod's Capital A/c | (6,000 x 1/2) | 3,000 |
| Mridul's Capital A/c | (6,000 x 1/2) | 3,000 |
| Calculation of Proportionate Profit | ||
| Profit of Last Year ( ending 31.03.2010) | 9,000 | |
| Profit For 9 months (till 01.01.2011) | (9,000 / 12) x 9 | 6,750 |
| Share of David | (6,750 x 1/3) | 2,250 |
Regards