Give two characteristics of Goodwill. Post category:Accountancy Reading time:1 mins read SOLUTION (i)It is an intangible asset not a fictitious asset. It is a valuable asset; (ii) It is helpful in earning excess profits. 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 PostDefine Goodwill. Next PostHow the goodwill is valued under the average profit’s method? You Might Also Like A and B were partners in a firm sharing profits in 3 : 1 ratio. They admitted C as a partner for 1/4th share in the future profits. C was to bring Rs. 60,000 for his capital. The Balance Sheet of A and B as at 1st April, 2019, the date on which C was admitted, was: August 2, 2022 X, Y and Z entered into partnership on 1st October, 2018 to share profits in the ratio of 4 : 3 : 3. X, personally guaranteed that Z’s share of profit after charging interest on capital @ 10% p.a. would not be less then Rs. 80,000 in any year. Capital contributions were: X – Rs. 3,00,000, Y – Rs. 2,00,000 and Z – Rs. 1,50,000. Profit for the year ended 31st March, 2019 was Rs. 1,60,000. Prepare Profit and Loss Appropriation Account. July 22, 2022 What is the difference between ‘Operating Profit’ and ‘Net Profit’? October 3, 2022 Leave a Reply Cancel replyYou must be logged in to post a comment.
A and B were partners in a firm sharing profits in 3 : 1 ratio. They admitted C as a partner for 1/4th share in the future profits. C was to bring Rs. 60,000 for his capital. The Balance Sheet of A and B as at 1st April, 2019, the date on which C was admitted, was: August 2, 2022
X, Y and Z entered into partnership on 1st October, 2018 to share profits in the ratio of 4 : 3 : 3. X, personally guaranteed that Z’s share of profit after charging interest on capital @ 10% p.a. would not be less then Rs. 80,000 in any year. Capital contributions were: X – Rs. 3,00,000, Y – Rs. 2,00,000 and Z – Rs. 1,50,000. Profit for the year ended 31st March, 2019 was Rs. 1,60,000. Prepare Profit and Loss Appropriation Account. July 22, 2022