Question no. 12 , journal entries with working please
Dear Student
Regards
| Journal | ||||
| Date | Particulars | Debit | Credit | |
| Nigam's Capital A/c | Dr. | 59,250 | ||
| Shreya's Capital A/c | Dr. | 19,750 | ||
| To Monu's Capital A/c | 79,000 | |||
| (Being goodwill adjustment done) | ||||
| P/L Suspense A/c | Dr. | 4,000 | ||
| To Monu's Capital A/c | 4,000 | |||
| (Being profit till death transferred to capital account) | ||||
| Calculation of Profits Credited to Monu's A/c | ||
| Year | Total Profits | Share of Monu (4/8) |
| 2011-12 | 97,000 | 48,500 |
| 2012-13 | 105,000 | 52,500 |
| 2013-14 | 30,000 | 15,000 |
| 2014-15 | 84,000 | 42,000 |
| Total | 158,000 | |
| Share of Goodwill of Monu | (1,58,000 x 50%) | 79,000 |
| (Half of Net profits credited to his account ) | ||
| Gaining Ratio | 3:1 | |
| Goodwill Adjustment for Monu | ||
| Nigam's Capital A/c | (79,000 x 3/4) | 59,250 |
| Shreya's Capital A/c | (79,000 x 1/4) | 19,750 |
| Sales for year ending 31-03-15 | 2,100,000 | |
| Profit for the year ending 31-03-15 | 84,000 | |
| Net profit ratio | (84,000/21,00,000 x 100) | 4% |
| Profit till Death | ||
| Sales between 01-04-15 to 01-07-15) | 200,000 | |
| Profit @ 4% on sales | (2,00,000 x 4%) | 8,000 |
| Monu's Share | (8,000 x 4/8) | 4,000 |
Regards