Mohan, Sohan and Suresh were partners in a firm sharing profits in the ratio of 2:2:1. Suresh was guaranteed a profit of ₹ 70,000. Any deficiency on…

Profit and Loss Appropriation A/c for the year ended $\displaystyle 31.3.2022$ Dr Cr. Particulars Amount Particulars Amount (₹) (₹) To Profit transferred to Partners’ By Profit & Loss A/c $\displaystyle 2,00,000$ Capital A/c’s: (Net Profit) Mohan $\displaystyle 80,000$ Less: Guarantee to Suresh $\displaystyle (18,000)$ $\displaystyle 62,000$ Sohan $\displaystyle 80,000$ Less:Guarantee to Suresh $\displaystyle (12,000)$ $\displaystyle 68,000$ Suresh $\displaystyle 40,000$ Add:Guarantee from Mohan $\displaystyle 18,000$ Add:Guarantee from Sohan $\displaystyle 12,000$ $\displaystyle 70,000$ $\displaystyle 2,00,000$ $\displaystyle 2,00,000$ or Q. (b) A and B were partners…………………………………….. Ans. (b) Normal Profit= $\displaystyle 20$% of Capital Employed = $\displaystyle 20$/$\displaystyle 100$ x ₹$\displaystyle 2,00,000$= ₹$\displaystyle 40,000$ $\displaystyle 34$ , $\displaystyle 000$ + $\displaystyle 38$ , $\displaystyle 000$ + $\displaystyle 30$ , $\displaystyle 000$ $\displaystyle 102000$ Average Profit = = = ₹$\displaystyle 34,000$ $\displaystyle 3$ $\displaystyle 3$ (i) Super Profit = Average Profit - Normal Profit = ₹$\displaystyle 34,000$- ₹$\displaystyle 40,000$ = - ₹$\displaystyle 6,000$ Note- Since there is no super profit, hence the firm does not have any goodwill.