CBSE Class 12 Accountancy Reconstitution Of Partnership Assignment Part B. Based on CBSE and NCERT guidelines. The students should read these basic concepts to gain perfection which will help him to get more marks in CBSE examination.
1. Goodwill is the monetary value of business reputation. It is an intangible asset.
2. Goodwill may be of two types:
a. Purchased goodwill
b. Non-purchased goodwill
3. When existing firm faces problem of limited financial resources and man power then one new additional partner enters into firm.
4. There are three methods of valuation of goodwill:
a. Average Profit Method
b. Super Profit method
c. Capitalisation Method
5. When new partner is admitted into existing partnership then existing partners have tosacrifice in favour of new partner, it is called sacrificing ratio.
6. Share of goodwill of new partner will be credited to sacrificing partners into their sacrificing ratio.
7. At the admission of new partner Profit & Loss on revaluation of assets and liabilities and balances of accumulated profits & losses will be distributed among old partners (only) in old ratio.
Q1. At the time of change in profit sharing ratio among the existing partners, where will you record an unrecorded liability?
Ans. Revaluation Account-Debit side
Q2. Anand, Bhutan and Chadha are partners sharing profits in ratio of 3:2:1. On 1st April 2007, they decided to share profits equally.Name the partners who is gaining on consequence of such change.
Q3. Give two characteristics of goodwill.
Ans. (i) it is an intangible asset having a definite value.
(ii) It helps in earning more profit.
Q4. Name any two factors affecting goodwill of a partnership firm.
Ans. (i) Favorable location (ii) Time period
Q5. In a partnership firm assets are Rs.5, 00,000 and liabilities are Rs. 2, 00,000. The normal profit rate is 15%. State the amount of normal profits.
Q6. State the amount of goodwill, if goodwill is to be valued on the basis of 2 years‘ purchase of last year‘s profit. Profit of the last year was Rs.20, 000.
Q7. Where will you record 'increase in machinery‘ in case of change in profit sharing ratio among the existing partners?
Ans. Revaluation Account- Credit Side.
Please refer to attached file for CBSE Class 12 Accountancy Reconstitution Of Partnership Assignment Part B
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