DK Goel Solutions Class 12 Chapter 3 as per latest DK Goel Book

1. DK Goel Solutions Class 12 Chapter 3 Changing in Profit Sharing Ratio among the Existing Partners DK Goel Solutions Class 12 Chapter 3 , which is laid out by master Accountancy instructors from the most recent form of DK Goel Class 12 Accountancy books. We, at Dk Goel Solutions help students to fathom every one of the hypotheses, specifically. There are various ideas in Accountancy, however the ideas of Trial Balance, Depreciation and Bank Reconciliation Statement (BRS) are required. DK Goel Solutions Class 12 – Chapter 3 Question 1. Mention the occasions on which reconstitution of partnership firm can take place. Solution 1 A business is reconstituted on the following occasions:— 1.) Change in the profit sharing ratio among the existing partners. 2.) Admission of an existing partner. 3.) Retirement of an existing partner. 4.) Death of a partner. 5.) Amalgamation of two or more partnership firms. Question 2. What adjustments are required at the time of reconstitution of a partnership firm? Solution 2

2. At the time of the reconstitution of a relationship company, the following changes are required: (i) Determination of the ratio for sacrifice and ratio for benefiting (ii) Goodwill Accounting. (iii) Assets and Net Earnings Tax Treatment (iv) Assets and Obligations Revaluation Accounting. (v) Capitals Adjustment. Question 3. Who should compensate whom in case of a change in profit sharing ratio of existing partners? Solution 3 The aim of the measurement of the sacrifice ratio is to assess the value of the fee to be paid to the sacrificing partner by the purchasing partner (i.e. the partner whose share has risen as a result of the change) (i.e. the partner whose share has decreased as a result of change). In addition, such fee is received on the grounds of an adequate amount of goodwill. Question 4. Give any three features of goodwill. Solution 4 The attributes of goodwill are below:- 1.) That is a commodity which is intangible. 2.) It doesn’t have a distinct life from that of an enterprise. Thus, as enterprise is sold, it has achievable worth. 3.) A subjective calculation of the worth is the value of goodwill. Question 5. Write any four factors which affect the goodwill of a partnership firm.

3. Solution 5 The four factors that impact a relationship firm’s goodwill are below:— 1.) Desirable market position:- If the organization is situated in a comfortable or popular location, it can draw more buyers and therefore provide more goodwill. 2.) Management Efficiency:- Once the organization is managed by competent and effective management, the income will begin to grow, resulting in an increase in the valuation of goodwill. 3.) Essence of Goodwill:- If a corporation deals with everyday goods, it will get a steady profit as the market for these goods will be stable. Such an organization will have more goodwill. 4.) Capital Needed:- The valuation of goodwill would also affect the amount of capital required for a company. If the same rate of profit is received by two business companies, the business with a lower capital requirement may enjoy more goodwill. Question 6. On what occasions does the need for valuation of goodwill arise? Solution 6 In the following conditions, the need to valuate goodwill in cooperation arises: 1.) Where the benefit share ratio between the current parties varies. 2.) For the admission of a new partner. 3.) Whether a companion retires or dies. 4.) When they sell the business. 5.) Where the company is combined with another business. Question 7. Explain any two methods of valuation of goodwill. Solution 7

4. 1.) Average Benefit Method:- This is a goodwill valuation process that is very basic and commonly practiced. Goodwill is measured in this system based on the amount of earnings over the previous year. To figure out the worth of goodwill, the average of all earnings is compounded by the accepted number of years. The formula is thus: Goodwill worth = average benefit = amount of sales for the year. 2.) Super Benefit Method:- Goodwill is measured in this manner on the basis of the surplus profit received by a corporation relative to the average profit earned by all companies. When a corporation does not have any planned surplus profits, it would have no goodwill. The formula is thus: (i) Normal Profit = (Capital Invested × Normal rate of return)/100 (ii) Super Profit = Actual profit – Normal Profit (iii) Goodwill = Super profit × No. of years purchased Download Free study materials for your Examinations

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