Where will you show purchase of Goodwill in a Cash Flow Statement? Post category:Accountancy Reading time:1 mins read SOLUTION It will be shown as outflow under ‘Cash flows from investing activities’. Please Share This Share this content Opens in a new window X Opens in a new window Facebook Opens in a new window Pinterest Opens in a new window LinkedIn Opens in a new window Viber Opens in a new window VK Opens in a new window Reddit Opens in a new window Tumblr Opens in a new window Viadeo Opens in a new window WhatsApp Read more articles Previous PostHow will you treat Bank Overdraft in a Cash Flow Statement? (C.B.S.E. 2015) Next PostPayment and receipt of interest and dividend is classified as which type of activity while preparing Cash Flow Statement. (C.B.S.E. 2019) You Might Also Like X, Y and Z are sharing profits and losses in the ratio of 5 : 3 : 2. They decide to share future profits and losses in the ratio of 2 : 3 : 5 with effect from 1st April, 2019. They also decide to record the effect of the following accumulated profits, losses and reserves without affecting their book values by passing a single entry . July 27, 2022 Asin and Shreyas are partners in a firm. They admit Ajay as a new partner with 1/5th share in the profits of the firm. Ajay brings Rs. 5,00,000 as his share of capital. The value of the total assets of the firm was Rs. 15,00,000 and outside liabilities were valued at Rs. 5,00,000 on that date. Give necessary Journal entry to record goodwill at the time of Ajay’s admission. Also show your workings August 1, 2022 Naveen, Qadir and Rajesh were Partners doing an Electronic Goods Business in Uttarakh and. After the accounts of partnership were drawn up and closed, it was discovered that interest on capital has been allowed to Partners @ 6% Per Annum for the years ending 31st March, 2017 and 2018, although there is no provision for interest on capital in the partnership deed. On the other hand, Naveen and Qadir were entitled to a Salary of Rs. 3,500 and Rs. 4,000 Per Quarter respectively, which has not been taken into consideration. Their respective Fixed Capitals were Rs. 4,00,000, Rs. 3,60,000 and Rs. 2,40,000. During the last two years, they had shared the Profits and Losses as follows : Year Ended Ratio 31st March , 2017 3 : 2 : 1 31st March , 2018 5 : 3 : 2. Pass necessary Adjusting Entry for the above Adjustments in the Books of the Firm on 1st April, 2018. Show your workings clearly July 22, 2022 Leave a Reply Cancel replyYou must be logged in to post a comment.
X, Y and Z are sharing profits and losses in the ratio of 5 : 3 : 2. They decide to share future profits and losses in the ratio of 2 : 3 : 5 with effect from 1st April, 2019. They also decide to record the effect of the following accumulated profits, losses and reserves without affecting their book values by passing a single entry . July 27, 2022
Asin and Shreyas are partners in a firm. They admit Ajay as a new partner with 1/5th share in the profits of the firm. Ajay brings Rs. 5,00,000 as his share of capital. The value of the total assets of the firm was Rs. 15,00,000 and outside liabilities were valued at Rs. 5,00,000 on that date. Give necessary Journal entry to record goodwill at the time of Ajay’s admission. Also show your workings August 1, 2022
Naveen, Qadir and Rajesh were Partners doing an Electronic Goods Business in Uttarakh and. After the accounts of partnership were drawn up and closed, it was discovered that interest on capital has been allowed to Partners @ 6% Per Annum for the years ending 31st March, 2017 and 2018, although there is no provision for interest on capital in the partnership deed. On the other hand, Naveen and Qadir were entitled to a Salary of Rs. 3,500 and Rs. 4,000 Per Quarter respectively, which has not been taken into consideration. Their respective Fixed Capitals were Rs. 4,00,000, Rs. 3,60,000 and Rs. 2,40,000. During the last two years, they had shared the Profits and Losses as follows : Year Ended Ratio 31st March , 2017 3 : 2 : 1 31st March , 2018 5 : 3 : 2. Pass necessary Adjusting Entry for the above Adjustments in the Books of the Firm on 1st April, 2018. Show your workings clearly July 22, 2022