Accounts Test No. 1

Accounts Test

Total Marks : 25

1. Mr. X a businessperson has earned the following profits in the last five years.

1995 1994 1993 1992 1991

1, 06,800 1, 03,600 99,400 97,800 96,500

Value goodwill of Mr. X on the basis of three years purchase of average of the past five years. 2. From the following particulars, value good will of 2 yrs. Purchase of last 5 years.

Year ended 31-12-1990 31-12-1991 31-12-1992 31-12-1993 31-12-1994

Turn over 5,15,0 00

Net profit 5%

5,45,0 00 5,35,0 00

6% 7% 7% 7%

5,40,0 00 5,60,0 00 3. The following balance sheet of Kantilal, Chandrakant. Balance sheet as on 31st March, 1995

Liabilities Capital

Amoun t

Assets Machinery

Amoun t 50,000

Kantilal

95,000 Building

41,000

Chandrak ant

70,000 Investment s 44,000 Stock 41,000 Debtor

30,000

Reserve Fund Creditors

2,50,0 Bank 00 Profit/loss A/c

20,000 66,000 30,000 13,000 2,50,0 00

Accounts Test

Total Marks : 25

1. The profit of a firm for the four years from 1991 to 1994 where

1991 1992 1993 1994

Rs, Rs, Rs, Rs,

40,000 75,000 95,000 50,000

Calculate the goodwill of the firm at 2 yrs. Purchase of the average profit for the last three years. 2. The books of a business showed that the capital employed on 31stDecember, 1992 was Rs.1, 00,000/-. Profits for the last five years are 1988, 1989, 1990, 1991 & 1992 were Rs, 60,000, Rs, 55,000, Rs, 75,000, Rs, 85,000 & Rs, 65,000 respectively. Goodwill is valued at 3 years purchase of the Super profit of the business. N.R.R. is 10%. 3. The present average net profit of Braful, Shobha partnership firm before detecting partner’s remuneration is Rs, 27,000 p.a. The capital employed in the business by the partner Braful Rs, 1, 00,000 & Shobha Rs, 50,000. The profit expected from the total capital invested is 10% p.a. The total remuneration is estimated to be Rs, 6,000 per annum. Find out the value of goodwill on the basis of 2 years purchase of super profit.

The net profits of the firm for the year ended 31st March, 1995 were Rs, 15,000 Rs, 25,000 Rs, 26,000. Ascertain the value of good will at 3 years purchase of the super profit of the 3 years taking the normal rate of return on capital employed is 10%. 4. Drawer Drawee Payee Amount Period Date of Bill Bill accepted

:

Shekhar Desai, Shastri Road, Mahad. : Sharad Verma, Narayanpeth, Pune : Mukund Pande, Panel. : Rs. 3,500/: 3months. : 21st June, 1995 : for 3,000 on 25th June, 1995.

5. On 10th March, 1995, Rajesh Bhoyar, Gandhinagar, Nagpur draws a 2 months bill for Rs. 3,000 on Samir Chaudhary Main Road, Belapur. Samir Chaudhary accepted the bill on 15th March, 1995.

4. Drawer Drawee Payee Period Amount Rs Date of Bill Date of Acceptance

: Vilas Patil, 20, M.G. Road, Pune. : Vikas Pawar, 31, S.V. Road, Nasik : Viraj Potade, 41, A.B. Road, Sholapur, : 3 months : 7500 : 1st January, 2007 : 3rd January, 2007

5. Drawer : Abhijit Patil, Vikram nagar, Patna. Drawee : Tejas Kapare, Kothrud, Pune. Payee : Amey Patki, Nagpur. Amount : Rs. 7500 Period : 60 days Term : After sight Date of Bill Drawn : 1st June 2006 Date of Acceptance : 11th June 2006 Accepted bill for Rs. : 7000 only.