Goodwill in Partnership Accounts — Accountancy STD 12 — Question

Kavitha is a partner in a firm. She withdraws ₹ 2,500 p.m. regularly. Interest on drawings is charged @ 4% p.a. Calculate the interest on drawings using average period, if she draws

1. at the beginning of every month
2. in the middle of every month
3. at the end of every month

How is goodwill calculated under the super profits method?

Govind and Gopal are partners in a firm sharing profits in the ratio of 5 : 4. They admit Rahim as a partner. Govind surrenders 2/9 of his share in favour of Rahim. Gopal surrenders 1/9 of his share in favour of Rahim. Calculate the new profit sharing ratio and sacrificing ratio.

Define of Single Entry System.

Explain the procedure for preparing a common- size statement.

Navin, Ravi and Kumar are partners sharing profits in the ratio of 1/2, 1/4 and 1/4 respectively. Kumar retires and his share is taken up by Navin and Ravi equally. Calculate the new profit sharing ratio and gaining ratio.

How the following items are dealt with in the final accounts of the not-for-profit organisation?

1. Sale of sports materials
2. Life membership fees
3. Tournament fund

Abdul Ltd. issue 50,000 shares of ₹ 10 each at a premium of ₹ 2 per share. Pass journal entry if the amount is fully received along with a premium amount of ₹ 2 per share.

Sunil, Sumathi and Sundari are partners sharing profits in the ratio of 3:3:4. Sundari retires and her share is taken up entirely by Sunil. Calculate the new profit sharing ratio and gaining ratio.