Valuation Of Good Will To Joint Venture

OMTEX – CLASSES 1. Prepare a bill of exchange from the following details. Drawee :Mangesh Mehta, 216, M.G. Road, Mumbai Drawer :Nagesh Shah, Shivaji Nagar, Pune. Period :50 days Amount :Rs. 7,500 Date of Bill : 20th January, 1996 Accepted on : 23rd January, 1996 2. Find out the average due date from the following Date of Acceptance Due Dates th 18 April, 1996 21st June, 1996 th 12 May, 1996 15th July, 1996 12th July, 1996 25th September, 1996 th 12 August, 1996 15th October, 1996

Amount Rs. 4,000 4,500 5,500 3,500

3. The profit of a firm for the 4 years from 1992 to 1995 were: Rs. 40,000, Rs. 45,000, Rs. 55,000 and Rs. 53,000. Calculate the goodwill of the firm at 2 ½ years purchase of the average profit for the last 3 years. 4. Anil sold goods to Ravindra for Rs. 6,000. Ravindra accepted Anil’s bill for Rs. 6,000 payable after 3 months. Anil discounted the bill with his bank at 10% p.a. On the due date Ravindra dishonoured his acceptance. Ravindra paid Rs. 3,000 to Anil and accepted a fresh bill for 3 months for the balance including interest @ 8% p.a. Anil sent the bill to bank for collection. On due date Ravindra honoured the bill. Pas the journal entries in the books of Anil. 5. Mangesh and Mahesh entered into Joint venture to produce an advertisement film for SANKET TRADERS at a contract price of Rs. 80,000. They opened a Joint Bank Account with Bank of Maharashtra in which Mangesh deposited Rs, 20,000 and Mahesh Rs. 40,000. They agreed to share profit and losses equally. Mangesh purchased raw film for Rs. 16,000 and Mahesh a camera for Rs. 7,000. They paid from Joint Bank Account: Artist’s Fees Rs. 36,000 Hire of sets Rs. 4,000 and Technician’s charges Rs. 20,000. The film was complete but due to certain defects in the film the Contract price reduced by 10%, the amount received by cheque from Sanket Traders. At the end of the venture the camera was sold for Rs. 5,000 and Mangesh took over the Unused film for Rs. 1000. Prepare: - Joint venture account Joint Bank account Co – venture account