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SERIES
  • 7/2/2025
Transcript
00:00:00so let us now deal with the second question up to illustration one we covered in the previous
00:00:22lecture along with the first part introduction of partnership second
00:00:29illustration London I'm a perfect law question number two illustration number
00:00:46now the following particulars are available in respect of the business
00:00:51carried on by Rathor capital invested put through Krana trading this is for the four years okay
00:00:59four years level or was some other last letter but the total being one lakh twenty thousand rupees
00:01:05okay one lakh twenties I'm right so one lakh twenty thousand rupees are they for our development in
00:01:18the future maintainable profit being thirty thousand rupees which is nothing but average
00:01:24profit or expected profit in the future market rate of in interest and investment ten percentage and the
00:01:33rate of risk return on capital invested being twelve percentage in the bank invest panel
00:01:39you may have some risk after risk compared to extra two percentage after I am expecting twelve percentage
00:01:51here I am expecting twelve percentage is that okay after the twelve percentage is the normal rate of return of the business
00:01:59in our remuneration from alternative employment of the proprietor if not in case in the business in the business in the business
00:02:07the proprietor is in the business and the location where our business is is the average period of return of the business is the average period of return of the company
00:02:17that may be considered as an amount to be deductible from here. Okay. Opportunity cost and pay.
00:02:24Opportunity cost. He has the opportunity to earn 6,000.
00:02:28If we have 10% in the money, we will be able to earn 10% in the money.
00:02:36The super profit income earned beyond the normal expected return as well as normal earnability of the owner.
00:02:44They will have the opportunity to earn.
00:02:47They will have the opportunity to earn.
00:02:52This is the expected profit or future medium profit.
00:02:55And NRR being this one and this is 150.
00:02:59You are required to complete the value of the goodwill on the basis of 5 years purchase of super profit of the business calculated on the average profit of the last 4 years.
00:03:06So, 5 years purchase is the number of years.
00:03:09We expect this profit and
00:03:11So, this is the expected profit.
00:03:16This is the period of maintainability.
00:03:19Okay.
00:03:20So, if you tell us what to calculate.
00:03:22You tell us what to calculate.
00:03:23You tell us what to calculate.
00:03:25How will you get the normal profit?
00:03:26Normal profit is equal to capital employed into normal rate of return.
00:03:38In this case, capital employed being 150,000.
00:03:40Normal rate of return.
00:03:41Normal rate of return.
00:03:42Whereimna oru.
00:03:4310% in Kudu Kambali.
00:03:4410% plus 10% in Kudu Kambali.
00:03:45So, you can take both.
00:03:4612% can be taken.
00:03:4712% can be taken.
00:03:4812% putting in all over the.
00:03:5018,000.
00:03:5118,000 rupees.
00:03:52The profit what you earn beyond the normal profit will be your super profit.
00:03:57So, super profit in this case being 6000 and period of maintainability n in this case being 5 years.
00:04:06Then if I multiply these two, then I will get what?
00:04:09Goodwill.
00:04:10Goodwill is equal to 30% of this.
00:04:12So, if you have to calculate this, if you have to calculate this opportunity cost, future mineral profit will subtract.
00:04:20If you have to calculate 10% of the bank, you will have to calculate 10% of the risk.
00:04:24That's why you will see 2 rupees.
00:04:27For every 100 rupees.
00:04:29Then, 10 plus 2, 12 rupees will be the normal rate of return.
00:04:32Is that clear?
00:04:42No.
00:05:10No.
00:05:11Okay.
00:05:39hidden goodwill is hidden or inferred or implied goodwill
00:06:04capital a 20,000 b 15,000 incoming partner
00:06:23one fourth share of profit and our capital capital
00:06:34eighteen thousand's will be there now goodwill
00:06:39in the example of the question
00:06:46governing incoming partner being C
00:06:51one fourth share of firms full goodwill
00:06:57full value will be firm's capital
00:07:04okay very good eighteen thousand rupees
00:07:08one fourth firm's inverse
00:07:11you will get 72,000 rupees
00:07:14firm would be goodwill sorry capital here
00:07:18in the 72,000 in the a would have capital
00:07:2220,000 b would have capital
00:07:2515,000 c would have capital
00:07:2918,000
00:07:313,000 and 100,000
00:07:3353,000
00:07:3753,000 and there is a difference
00:07:44there is a difference
00:07:45and the difference is what is goodwill
00:07:4819,000
00:07:50incoming partner
00:07:51one third share of capital
00:07:53one third share of capital
00:07:56existing balance
00:07:58the difference
00:08:00is
00:08:05clear
00:08:06okay
00:08:08okay
00:08:09okay
00:08:11okay
00:08:13okay
00:08:14okay
00:08:15okay
00:08:17okay
00:08:19okay
00:08:21okay
00:08:23okay
00:08:25okay
00:08:27okay
00:08:28okay
00:08:35okay
00:08:38okay
00:08:57Here is a theory, I will start with the examples here.
00:09:22Example number 1.
00:09:25Example number 1.
00:09:30How can you pass a gel entry in case of admission of a partner for goodwill?
00:09:37A, B and C are in partnership, sharing profits and losses in the ratio of 2 to 2 to 1.
00:09:44They want to admit D into partnership with one-fifth a share.
00:09:48D brings 30,000 as capital and 10,000 as premium for goodwill.
00:09:52Okay.
00:09:53This is a question that you have to say.
00:09:55Okay.
00:09:57Goodwill and premium for goodwill and premium for goodwill and premium for goodwill.
00:10:03As well as goodwill.
00:10:06As well as goodwill.
00:10:09If firm's total goodwill is goodwill, single partners value is premium for goodwill.
00:10:20So, premium for goodwill.
00:10:21Based on whom?
00:10:22Incoming partner D, 10,000 rupees.
00:10:24Adina, what could be the goodwill of the firm?
00:10:25What could be the goodwill of the firm?
00:10:29What could be the goodwill of the firm?
00:10:30Okay.
00:10:31So, when you share one share?
00:10:32A share is the goodwill of the firm.
00:10:33If you share one share $50,000 you will see.
00:10:34So, you have to share one share.
00:10:35Incoming partner D. 10,000 rupees. What could be the goodwill of the firm?
00:10:42What could be the goodwill of the firm?
00:10:49Okay. So, if you share 1-5th in the firm.
00:10:54If you share 1 share, the firm is 5th in the firm.
00:10:581 share, 10,000 are in the firm.
00:11:005 share, 50,000.
00:11:02This is goodwill.
00:11:04Journal entry is short trip.
00:11:08Premium for goodwill is goodwill.
00:11:12Goodwill is goodwill.
00:11:14Rise the goodwill to all the partners in the old ratio.
00:11:18Reverse the goodwill to all partners in the new ratio.
00:11:23New ratio.
00:11:25New ratio.
00:11:27Okay.
00:11:29So, we have 3 partners.
00:11:31A, B, C, D.
00:11:33Rise the goodwill to all the partners.
00:11:35Goodwill to all the debit and the partners.
00:11:37We can credit.
00:11:39Cancel.
00:11:41Partner.
00:11:43Credit.
00:11:45Credit.
00:11:47Goodwill to all the image.
00:11:49Credit.
00:11:51Goodwill to remove the goodwill.
00:11:53Debit.
00:11:55So, this is the ultimate result.
00:11:57This is the ultimate result.
00:11:59This is the total.
00:12:01Goodwill is goodwill.
00:12:03Premium for goodwill is goodwill.
00:12:05So, profit sharing ratio on the 2 is to 2 is to 1.
00:12:11It is the ultimate result.
00:12:13Old ratio on the 2 is to 2 is to 1.
00:12:152 is to 2 is to 1.
00:12:172 is to 2 is to 1.
00:12:19D into partnership firm with one-fifth share of the new ratio.
00:12:29Let the profit be.
00:12:31Let the profit be.
00:12:33Let the profit be.
00:12:351.
00:12:37That is the balance after.
00:12:39Balance after.
00:12:41Balance after.
00:12:43B for 25.
00:12:44This is the value and the value and the value of the new ratio.
00:12:46Who is not the value of D?
00:12:47D?
00:12:48D.
00:12:49D.
00:12:50Is the share.
00:12:511 minus.
00:12:52That is the balance is the 1-5th.
00:12:531-5th.
00:12:54Balance 4-5th.
00:12:56This, we will give you a value.
00:12:58How is the balance?
00:13:00The balance will be 4-5th.
00:13:01A Share will point in time.
00:13:032-5th.
00:13:045th, 8 by 25, B kye varam bodhu, adai 8 by 25, C varam bodhu 4 5th into 1 5th, yeah, 4
00:13:19by 25, final ratio setthi erdham bodhu, final ratio setthi erdham bodhu, A kye on the 8
00:13:25by 25, and B kye 8 by 25, C kye 4 by 25, D kye 1 5th denominator eequal pannu, apper denominator
00:13:3825 akadhu 5 ala denominatorla matupi pannu namna numeratoram adai meri matupi pannu namna
00:13:43then this value being 5 by 25. So the final ratio being 8 is to, 8 is to 4 is to 5. Now
00:13:54in this ratio, goodwill is going to be reversed. 2 is to, 2 is to, 1 ratio le modhu nam
00:13:59anna pannu rao, rise pannu rao adhu kapran cancel pannu. 50,000 rupees le namna 2 is to, 2
00:14:06is to, 1 le porting naa, here you will get 20 credit, 20 credit, 10 credit dash. New ratio
00:14:14vana, 8 is to, 8 is to, 4 is to, 5 le reverse pannu paodhu, 16 debit, 16 debit, 8 debit, 10
00:14:23debit. Sorry, 10 debit. Sorry, 16 debit, 16 debit, 8 debit and 10 debit.
00:14:28So the balance 4 credit, 4 credit, 2 credit, 10 debit and 10 debit. So after general interest
00:14:43them are, this is to be written, you have to go down to the C loan. This is to call it
00:14:47here, D account debit, D is capital account debit. To A is capital, to B is capital, to C is capital.
00:15:1010, 4, 4 and 2. This is the answer. Governing it. Governing it. If you have a model, one-fifth
00:15:28share is one of the types of ratios. One of the types of ratios. Old partners, old ratio
00:15:36and sacrificing ratios are same for the old partners. Old partners are the same. Is
00:15:53that clear? That's how you can understand. Sacrificing and gaining ratio in case of premium
00:16:04for goodwill. Who is goodwill, who is goodwill and dear share of goodwill? That is D's capital
00:16:10from debit. D's capital upon debit. 10,000. Now if you have a capital A's capital, B's capital
00:16:26and to seize capital update we will be able to purchase. What is the ratio? Sacrificing
00:16:33ratio. I have taken the premium for goodwill and all amount of sacrificing ratio. Goodwill
00:16:42complete, rise in the old ratio, cancel in the new ratio, ultimate results. Premium
00:16:49for goodwill is sacrificing ratio. In this ratio of old ratio, sacrificing ratio of the
00:16:56old partners are same. Checked. First, we understand the same. So, this is 2 is to 2 is to 1
00:17:04ratio share. 2 is to 2 is to 1 is what is the sacrificing ratio? Sacrificing ratio.
00:17:10In the world, the old ratio is 10. Premium is sacrificing ratio. In the type of ratios,
00:17:17the old ratio is sacrificing ratio. Same. Let me explain that later. 2 is to 2 is to 1
00:17:23ratio. 4 is to 4, 4 is to answer. If you have to calculate the same,
00:17:28direct answer. Provided, what you have to do? You have to know the logic.
00:17:34What is the logic? Incoming partners share, existing partners share
00:17:40with the details, the old ratio and sacrificing ratio are same. That is the
00:17:45premium for goodwill. Incoming partner is the debit. That is the sacrificing ratio means
00:17:50old ratio share. Clear? Now, sir, this is the same thing.
00:17:59same ringle, sir. Proof pannam pannam pannam sir. Pannikkalam. Old ratio and sacrificing ratio
00:18:03on the sacrificing ratio. Now, how do we govern? Governing. Governing. Sacrificing ratio is equal to old
00:18:14ratio minus new ratio. Now, what is the old ratio? New ratio is 8 by 25.
00:18:29denominator level 5. Add 5 into the definition of 5. If you take the number of 5 is to
00:18:32the sum of 5 by 5, which is 5 to the sum of 5 by 5 by 5, which is 5.
00:18:57minus 4 by 25, 4 by 25. So 25 denominator numerator being 5 minus 4 ah. So 1 by 25.
00:19:13A key 2 by 25, B key 2 by 25, C key 1 by 25, otherwise 2 is to 2 is to 1 now are in
00:19:23case. All the answer is correct. In case of D, old ratio being 0, new ratio being 1 by 5,
00:19:36otherwise you will get 1 by 5, 5 by 25. So minus 5 by 25 is to 1 by 25. So minus 5 by 25
00:19:45is to 1 by 25. Gaining ratio is to 1 by 25. Gaining ratio is to 1 by 25.
00:19:52One is to gain, then sacrificing. What you gain is to sacrifice. So what you gain is to sacrifice.
00:19:57If you gain, you lose. You lose. You sacrifice.
00:20:02Then the amount is 5 by 25 of the full goodwill.
00:20:09Full goodwill is 50,000.
00:20:11In the 50,000, 5 by 25, B is 2 by 25, B is 5 into 1 by 25.
00:20:26Full goodwill is 5 into 1 by 25.
00:20:31Full goodwill is very simple.
00:20:32Rise the goodwill to all the partners in the old ratio and cancel by debiting to all the partners in the new ratio.
00:20:39That is the ultimate results.
00:20:41Full goodwill is premium for goodwill.
00:20:44The amount is sacrificed.
00:20:47The amount is sacrificed.
00:20:49The amount is sacrificed.
00:20:52Sacrificing ratio is not available.
00:20:55The first type of illustration is the old ratio.
00:20:59Clear?
00:21:00Come on.
00:21:01Make note of it.
00:21:06Can we use goodwill account in debita?
00:21:07What's your question, Sakri Rajan?
00:21:08Can we use goodwill account in debita?
00:21:09What's your question, Sakri Rajan?
00:21:10What's your question, Sakri Rajan?
00:21:11Can we use goodwill account in debita?
00:21:12What's your question, Sakri Rajan?
00:21:17Can we use goodwill account in debita?
00:21:18Can we use goodwill account in debita?
00:21:19What's your question, Sakri Rajan?
00:21:24What's your question, Sakri Rajan?
00:21:25What's your question, Sakri Rajan?
00:21:26What's your question, Sakri Rajan?
00:21:31What's your question that is paid for?
00:21:32If it is like you tear Shri Rajan?
00:21:34doesn't it?
00:21:35Oh no?
00:21:36You don't know the goodwill account in debita?
00:21:37We earned a goodwill account today?
00:21:38You take the goodwill account say it please don't show the goodwill account that then, ok?
00:21:39I mean the goodwill of the record a condo one goodwill of the condo of the proud facial
00:21:53unless specifically stated don't show the bill of okay
00:21:56clear text
00:22:24next question
00:22:54example number two
00:22:56a and b are equal partners they wanted to take say as third partner for one third share and
00:23:12for this purpose goodwill was valued at rupees 120,000 the general entry for the adjustments
00:23:16of the goodwill through partners capital funds NNK grant.
00:23:51okay new ratio one is to one is to one equal partners even on the one third okay so abhi na 40 40 40 so the ultimate value being a kiki credit 20 b kiki credit 20 c kiki 40 debit.
00:24:18what about the sacrificing ratio sir?
00:24:23sacrificing ratio
00:24:25what about the sacrificing ratio?
00:24:27how about the sacrificing ratio?
00:24:28how about the sacrificing ratio?
00:24:30what about the sacrificing ratio?
00:24:37rates?
00:24:38what about the sacrificing ratio?
00:24:39what about the sacrificing ratio?
00:24:40what about the sacrificing ratio?
00:24:41sacrificing ratio is equal to the old ratio which is equal to the old ratio which is equal one is to one.
00:24:4820 20 20.
00:24:55this is a shortcut.
00:24:56premium for goodwill
00:24:58for goodwill
00:25:00c kiki credit
00:25:01premium for goodwill
00:25:02c kiki debit
00:25:03clear?
00:25:04i always recommend this method for safer answer.
00:25:05full goodwill
00:25:06premium premium
00:25:13premium for goodwill seek debit on the premium sacrificing ratio
00:25:19full goodwill old ratio full goodwill new ratio cancel
00:25:24in this method what is the answer?
00:25:28clear? I always recommend this method for safer answer
00:25:33full goodwill premium for goodwill
00:25:37the new ratio is the answer
00:25:45but in this method what is the advantage?
00:25:51the premium for goodwill is 1 third
00:25:55sacrificing ratio is 1 third
00:26:021 is to 1 ratio is 1 third
00:26:06that will be the advantage of this one
00:26:10is that clear?
00:26:12yes come on text me we will move on to the next one
00:26:14clear than it?
00:26:28example number 3
00:26:36example number 3
00:26:38A and B are equal partners they wanted to admit C for one sixth partner one sixth partner who brought 60,000 as goodwill
00:26:506
00:26:52premium or goodwill?
00:26:54premium okay
00:26:56so, C's goodwill one the one share one the 16th
00:27:04so, Firm's goodwill is 6 shares
00:27:06okay it should be 360,000
00:27:10Okay, it should be 360,000.
00:27:18360.
00:27:19Now, old ratio put the new ratio put the new ratio.
00:27:23So, what do you do?
00:27:25Rise the goodwill to all partners in old ratio.
00:27:30Rise the goodwill to all partners in old ratio.
00:27:33A, B, C.
00:27:34360.
00:27:35360.
00:27:36360.
00:27:37Cancel.
00:27:38In the new ratio, the new ratio being 3 is to 2 is to 1.
00:27:48Then, 180, 120, 60.
00:27:57Clear?
00:27:59Correct?
00:28:01So, A will get nothing.
00:28:02C will get 60 credit, D will, C, sorry, B will get 60 credit, C will get 60 debit.
00:28:11So, the answer being, C is capital upon debit, 60 to B is capital.
00:28:20What do you do?
00:28:20A and A will.
00:28:21A and A.
00:28:24Sir, the new method put the new ratio in old ratio.
00:28:25Sir, how do you call it?
00:28:27Pondalaam.
00:28:27For that, we are in need of what?
00:28:30Sacrificing ratio.
00:28:31Sacrificing ratio is equal to old ratio minus new ratio.
00:28:35AQ pertharikkim old ratio 1 by 2 new ratio being 3 by 6
00:28:42ok 0
00:28:48B quorum both 1 by 2 minus 2 by 6
00:28:546 3 minus 2 is equal to 1 by 6
00:28:59C quorum both 0 minus 1 by 6 is equal to 1 by 6 negative
00:29:05negative is equal to gaining ratio
00:29:07premium for goodwill model
00:29:10C quorum both debit negative is equal to 1
00:29:14C is capital upon debit premium for goodwill
00:29:20A and B
00:29:230 is to 1
00:29:250 is to 1
00:29:27B is capital
00:29:31B is capital
00:29:32that value being 16
00:29:34you will get the same answer
00:29:37so in the same time
00:29:40sacrificing ratio is equal to the time jazzy
00:29:43but that model
00:29:44rise and cancel model is easier
00:29:47that model is better
00:29:49so in the same way
00:29:56oh
00:29:570
00:29:59Shall I move on to the next one?
00:30:26Example number 4, A, B and C are equal partners, they decided to take D who brought 36,000 as
00:30:43goodwill.
00:30:44The new candle ratio being 3 is to 3 is to 2 is to 2.
00:30:50So, these goodwill are 2 shares.
00:30:57So, these goodwill are 2 shares, 3 is to 3 is to 2 is to 2.
00:31:04So, these goodwill are 2 shares, 3 is to 3 is to 2 is to 2.
00:31:11Now, 2 shares, 3 is to 3 is to 2 is to 2, now 2 shares are 36,000.
00:31:20Do the cross multiplication.
00:31:21What is it?
00:31:225 times, 1,80,000 rupees.
00:31:27Correct?
00:31:281,80,000 rupees.
00:31:29It is goodwill.
00:31:30So, goodwill is done.
00:31:31So, goodwill is done.
00:31:32Rise the goodwill to all the partners in the old ratio.
00:31:37A, B, C, D equal partner 60, 60, 60.
00:31:38Cancel the goodwill in the new ratio.
00:31:40While cancel the goodwill in the new ratio.
00:31:41While cancel the goodwill in the new ratio.
00:31:42But, it is going to be
00:31:56while canceling it is going to be debited to the Partner's capital.
00:32:11the partner's capital. 3 is to 3 is to 2 is to 2 ratio and 36 36 then 54 54. rise
00:32:28the ratio of 1 is to 1 is to 6 will be the sacrificing ratio and 36 gaining ratio of money. 1 is to 1 is to 4
00:32:54are 4 ok. Now the ratio is to 4 to come circle right. D's capital account debit the value
00:33:04being 36 to A's capital 6 to B's capital 6 to C's capital 24. Clear?
00:33:24.
00:33:54Now illustration number 3
00:34:24Okay, the following is the balance sheet of yellow and green.
00:34:48The partners share profits and losses in the ratio of 3 to 2.
00:34:52So we need these details, so old ratio 3 to 2.
00:35:04On the above date, black was admitted, yellow-green black was admitted as a partner under a condition
00:35:10that he would pay 20,000 as capital, goodwill was to be valued at 3 years purchase of the
00:35:14average of 4 years profits which we yield.
00:35:17Okay, so 4 years of the average profit into 3 years of the monthly payment now.
00:35:23So profit all over the goodwill is equal to 9000, 14000, 12000, 13000 divided by 4 into
00:35:363 years purchase, your ultimate value, 36000 is the goodwill, clear.
00:35:47New ratio is given.
00:35:49So time three, raise money, cancel the goodwill and the formula, and the format is comfortable
00:35:53on the upper exercising ratio.
00:35:54We have a differentaire, produced the goodwill.
00:35:55And we have a similar, rice, the goodwill to all the partners in the new ratio, cancel
00:36:02the goodwill, sorry old ratio, okay, cancel the goodwill under new ratio.
00:36:13So, yellow, green and black. Rise upon both, 3 is to 2 ratio rise upon you. 14,400 for green. 21,600 for yellow. Right.
00:36:32Either cancel upon both, 6 is to 5 is to 5. So, yellow are there? 13? Find it for yellow and what about green? 11,250, 11,250.
00:37:02So, the ultimate value being, yellow, 8,100 credited. Green, 3,250 credited. And black, 11,250.
00:37:203,150. 3,150, okay. 3,150 credited. And you give them both, 11,250, debit.
00:37:32Debit. If you add, you don't need to add, you don't need to add, you don't need to add. Credit, you don't need to add debit. Give general entries and balance sheet. If Goodwill is adjusted through Partners capital. Partners capital.
00:37:45Accounts. So, we can add, you don't need to add, you don't need to add. So, after, general entry. Goodwill is entry.
00:37:53B is capital account debit, 11,250, A is capital account, 8,100 credit, sorry, Y black, okay,
00:38:09even the G is capital account, 3,150. Apart from that, 20,000 is brought in by incoming
00:38:18partner for capital. So, bank account debit to B is capital, value being 20,000. I am
00:38:31going to prepare the balance sheet. So, capital, black, yellow, green, here, 25,000
00:38:41on the sheet, 8,100 credit to the balance, yellow, 33,100, green, 3,150, add 23,150, black,
00:38:5420, and minus 11,250, 8,750, add 11, bank balance increase of the salary assets for 20,000
00:39:05rupees bank in particular. The new balance being 85,000. Here, new balance in the liability
00:39:15side, hope you will be getting 85,000. Okay, this is the new balance sheet. Is that clear?
00:39:23Make a note of it. So, cash and bank, here, readily, meaning, no issues. Already, there is a bank
00:39:34balance. Now, you will get 30,000. Clear? That's all. Make it faster.
00:39:44Okay.
00:39:45No issues.
00:39:47Let's do it.
00:39:49Okay.
00:39:50What's that?
00:39:52All right.
00:39:54Let's do it again.
00:39:57Okay.
00:39:58All right.
00:39:59Let's do it again.
00:40:03Okay.
00:40:04All right.
00:40:07All right.
00:40:08Okay.
00:40:09All right.
00:40:41Shall I move on to the next one?
00:41:11Illustration number 4.
00:41:18So, in illustration number 4.
00:41:33What happens?
00:41:38With the information given in illustration 3, let us give journal entries and prepare balance sheet assuming that the goodwill is brought in cash.
00:41:48Let us see, already we know the goodwill being 36,000.
00:42:00But, we have already found out that being 36,000.
00:42:07And, you know that rise and cancel per number of Y credit, GQ credit, B debit.
00:42:18B coin the debit.
00:42:23Clear?
00:42:25Now, what do we do?
00:42:32What happens?
00:42:33B's capital is not going to be debited as he brought money for this.
00:42:45The money is not going to be debited as he brought money for this.
00:42:46If you do it, you can pay debit.
00:42:48If you do it, you can pay a debit.
00:42:49If you pay a angle, what do you do?
00:42:52And you can pay a entry.
00:42:54Goodwill is now going to be the right.
00:42:57The goodwill has Как an entry?
00:42:58B's capital upon debit.
00:43:01Why is capital to G's capital?
00:43:0911,250, 8100, 3151.
00:43:15which is right here, bank to B's capital.
00:43:22now
00:43:26when you compare this 20
00:43:30his share of goodwill is 11,250
00:43:38is that clear
00:43:41capital material isn't goodwill is goodwill is goodwill you can share
00:43:45what you are doing, renting combine entry
00:43:52So the entry being bank upon debit 31,250 to wise capital 8100,000,000,000,000.
00:44:22To G's capital, Green's capital, 3,150 and to B's capital, 20,000, am I right?
00:44:42How are you?
00:45:12These capital were with black, other value, 20,000 rupees, no change in trade papers.
00:45:20Then the total being 96,250, 96,250, clear?
00:45:30Then the capital is the capital.
00:45:32Then the capital is the capital.
00:45:34Do that as a bank?
00:45:35Do that.
00:45:36Back in a case of capital.
00:45:37How are we beneath the capital of a simple cash?
00:45:43That won't be a 25 million dollar to frame houses yet?
00:47:19Let us now move on to the next one.
00:47:26Illustration number 5.
00:47:38Illustration number 5 ohm, 3 over a variant now, 3 over a variant.
00:47:45So, 5.
00:47:46Country with the same problem, let us give a journal entries and prepare balance sheet assuming
00:48:04that the goodwill is brought in cash but withdrawn.
00:48:11So, this is the campaign entry.
00:48:18Am I right?
00:48:20Okay.
00:48:21In the entry appear, let us see.
00:48:27Bank account debit, 31,250.
00:48:341,2,50.
00:48:351,2,50.
00:48:361,2,50.
00:48:371,2,50.
00:48:381,2,50.
00:48:391,2,50.
00:48:401,2,50.
00:48:411,2,50.
00:48:421,2,50.
00:48:431,2,50.
00:48:451,2,50.
00:48:461,2,50.
00:48:471,2,50.
00:48:481,2,50.
00:48:491,2,50.
00:48:501,2,50.
00:48:511,2,50.
00:48:522,50.
00:48:531,1,50.
00:48:54ière Holdings.
00:48:551,2,50.
00:48:561,2,50.
00:49:141,2,50.
00:49:18G's capital up on debit to bank.
00:49:26Y's a goodwill share, G's a goodwill share, $11,050.
00:49:34Sir, if you have two campaigns, you can do it.
00:49:38The money is B, the money is YMG.
00:49:42Business school, who is B?
00:49:45The money is YMG.
00:49:48You can do it.
00:49:49If you just have a simple campaign, you can do it.
00:49:52It's a hidden adjustment.
00:49:55Hidden adjustment is not.
00:49:57If you are doing it, you can do it.
00:50:01If you are doing it, you can do it.
00:50:03I'll say, you can do it, you can do it.
00:50:07It's not a good one.
00:50:08So, if you do it, you can do it.
00:50:12You can do it.
00:50:15So, what's your entry?
00:50:18Bank is 20,000 rupees. 30 are now.
00:50:23O, G, G, is 20,000 rupees.
00:50:29Where the change is 20,000 rupees.
00:50:33Where the change is not?
00:50:35The change is not.
00:50:36The change is not.
00:50:37The change is not.
00:50:39Trade payables 20.
00:50:42So then the ultimate value being 85,000.
00:50:46The ultimate value being 85,000.
00:50:50Question number 5.
00:50:54So, if you are asking,
00:51:03if you are asking,
00:51:05if you are asking,
00:51:07you are asking,
00:51:08you are asking,
00:51:09you are asking,
00:51:11you are asking,
00:51:13you are asking,
00:51:14you are,
00:51:15that should not come in the books.
00:51:17That is what about the sixth one.
00:51:19Around the illustration,
00:51:21privately settled that is written.
00:51:23Goodwill entry,
00:51:24we will go for the sixth one.
00:51:26Okay.
00:51:28now.
00:51:29Six to one.
00:51:30Okay.
00:51:31Now.
00:51:32six to one.
00:51:33ok now 6 to 1 illustration 6
00:51:59on the basis of information given in illustration 3 let us give journal entries and prepare
00:52:20balance sheet assuming the goodwill is paid privately goodwill privately paid
00:52:25goodwill will come and return to the sale of the bank will return to the bank from the bank
00:52:32the entire thing is completed. Only capital brought in is going to be considered.
00:52:38Then bank account debit to who brings it? Black. Black's capital. 20,000. Privately
00:52:52capital. This is 30. Black's capital. 20. The rest will be the same. Clear.
00:53:15The rest will be changed.
00:53:45The rest will be changed.
00:53:52The rest will be changed until the end of the day period.
00:53:57The rest will be changed.
00:54:03The rest will be changed.
00:54:06next
00:54:297.1 illustration number seven
00:54:36Now, goodwill calculation, admission and retirement is the only one. Change in P&L ratio is the same.
00:54:51A, B, C are equal partners. They wanted to change the profit sharing ratio into 4 to 3 to 2. Equal is equal to 3 to 2.
00:55:02This is, C is equal and c is equal. A, B, C is not a part of work.
00:55:10It is, C is not a part of work. C is not a part of work. C is not a part of work. A is not a part of work.
00:55:16That means sharing ratio. 1 is to 1 is to 1 is to 4 is to 3 is to 2. Make the necessary
00:55:26general entries. Goodwill of the firm is valued at 90. If you know. Rise the goodwill and
00:55:31cancel the goodwill. So, rise the goodwill in the old ratio. A, B, C. Old ratio being
00:55:39equal. 30, 30, 30. Cancel the goodwill to all the partners in the new ratio.
00:55:45new ratio being 4 to 3 to 2, 40, 30, 20. A will get credit of rupees, sorry debit of
00:55:55rupees, 10, our gain bundle. B will have nothing, C will come up with 10, credit out. Price
00:56:04will come up with credit, cancel will come up with debit, right. After another journal entry
00:56:08will be, A's capital upon debit, 10 to C's capital, 10. You know, when the ratio is calculated
00:56:21by sacrificing ratio or gaining ratio? Old ratio minus new ratio is the sacrificing ratio.
00:56:27A is equal to 1 third, new ratio 4 by 9. Okay, 4 by 9. That means minus 1 by 9. B is equal to 1 by 3 minus 1 by 3, dash.
00:56:54C is equal to 1 by 3, new ratio being 2 by 9. 1 by 9. This is sacrifice. Positive number. Negative
00:57:11comes left, us gain. If we $C worth, which will need a debit means, drop by $C. Where will
00:57:16be credit? This insuranceは, checking tofaat. Again, this is going to give, which is going
00:57:19to you. There, anything that you loans about that will give. The Chats, it is going to be
00:57:28given a bonus of gold. C is going to give, which tells to you. That is For a change in new
00:57:31hamlet. Number 12 than Hamilton, which goes versus stock and Sold. So, according to you know, there will
00:57:351 by 9, this is the easiest way to get the answers, right? Rise and cancel is the shortest way to get the answers, without any error.
00:57:42But, goodwill, premium for goodwill, concept videos, you can see.
00:57:50You can see it. You can see it. You can see it.
00:57:57You can see it, sir. Why don't you see it? You can see it.
00:58:04You can see it. You can see it. Given everything is already available.
00:58:14Okay. So, you can see the concept videos and see it.
00:58:20You can see it.
00:58:27Shall I go for the next one?
00:58:42Okay.
00:58:49Rising and cancelling are the same.
00:58:52Book will give you the first aspect.
00:58:57Book will remove goodwill are the same.
00:59:00Book will give you the old partners.
00:59:03You can see the size of goodwill.
00:59:04click in the next one.
00:59:32the answer, just now remove the answer
00:59:34and remove the answer
00:59:36here are the new ratio
00:59:38all the ratio will accept the option
00:59:40and remove the answer
00:59:42to the new ratio
00:59:44so that the cancellation
00:59:46names are only for the old partners
00:59:48the new partner
00:59:50the new partners admit
00:59:52come to value
00:59:54you have to pay cash
00:59:56I can't answer
00:59:58I care for 10 years
01:00:00Just telling me to tell me what is the value of trust is you're going to be here, by saying I'm trying to know the value of trust and trust in that I believe in the same time.
01:00:10What are the value of trust in this value?
01:00:15Is common to accept a balance of trust in this value?
01:00:20that's why rising and canceling. Right? Now 8th one,
01:00:50A, B and C are in partnership sharing profits and losses in the ratio of 4 is to 3 is to
01:01:053.
01:01:06They decided to change the profit sharing ratio in the ratio of 7 is to 7 is to 6.
01:01:13Okay, goodwill of the firm is valued at rupees 20,000, calculate the sacrifice and gaining
01:01:21ratio of the partners and make necessary demands.
01:01:24Sacrificing gaining ratio 4 to 4 is to 4, so sacrifice and gaining ratio is equal to old
01:01:34ratio minus new ratio, if they are negative, they are gaining ratio of money, old ratio
01:01:404 by 10, new ratio being 7 by 20, so 1 by 20.
01:01:52You have sacrifice by the R, B and C are in partnership 3 by 10, 7 by 20, 6 minus 7, minus
01:02:041 by 20.
01:02:0520. So, this is the gain. Seek is 3 by 10. 6 by 20. Okay. Dash. So, this is the sacrifice
01:02:22is the gain. Goodwill is the gain. The gain is the charge. What do you charge? 20,000 x 1,000, 1,000.
01:02:46So, this is the sacrifice that you charge. If you charge it, you charge it. If you charge it, you charge it. If you charge it, you charge it. You charge it. That is the number of 1,000.
01:02:58Clear?
01:03:02Right.
01:03:12So,
01:03:40if you look at the goodwill along with the admission as well as changing the ratios,
01:03:48three reasons we will be able to take. One admission is retirement, changing the P and R ratio.
01:03:56Even in case of amalgamation, absorption, reconstruction, that is what we will be able to use.
01:04:01Sale to a company, those things you will be studying probably at North to your foundation
01:04:07level, internal level.
01:04:08Yes, you will study at your intern. Okay. So, now let's move on to the next one.
01:04:19Retirement is goodwill. Retirement is a goodwill. Retirement is a goodwill.
01:04:24If you are earning a profit, you will lose a profit. So, the Retiring partner is the sacrificing partner.
01:04:30Let's see.
01:04:37Retirement is a goodwill. I think one more illustration is there. Oh, changing the ratio, one more illustration.
01:04:44A, B, C and D are in partnership, sharing profits and losses equal. They mutually agreed to change
01:04:55the profit sharing ratio 3 to 3 to 3 to 2 to 2 to 2. The firm's goodwill, 20,000, give necessary
01:05:02general entries.
01:05:13Goodwill to be raised.
01:05:14Goodwill to be raised means debited to their account in the new ratio. Sorry, old ratio.
01:05:20A, B, C, D equal 5000, 5000, 5000, 5000 and 5000. Debit. Goodwill to be cancelled in the new ratio.
01:05:273 is to 3 is to 2 is to 2 is to 2 is to 2. 6,000, 6,000, 4,000, 4,000 credit. So, raise
01:05:48upon the credit. Sorry, raise upon the credit. Cancel upon debit debit. A to the debit say
01:06:031 debit, B to 1 debit, C to 1 credit, D to 1 credit. That's why A's capital debit debit, A's debit
01:06:091, B's capital, debit 1 to C's capital, credit 1 to B's capital, credit 1.
01:06:24Ratio is not going to go to the Gaining and Sacrificing Ratio.
01:06:28And the formula is not going to follow up.
01:06:30Booker is not going to go to the book.
01:06:32Read the model is interchangeable.
01:06:39Goodwill is one of the most important chapters.
01:06:44Subsequent in the ratio calculation, Goodwill calculations, ready to go to the comprehensive illustration, one of the adjustments that comes from the day.
01:06:51That is, in the chapters, it is not going to be strong.
01:06:55Actually, one of the goodwill is not going to be 4 classes, 4 classes, 4 classes.
01:07:004 sessions like, over class, 4 classes, 4 classes, goodwill is not going to be.
01:07:05Now, we have the revaluation method, memorandum revaluation method, premium method, and where cash brought in, not cash brought in, and partially cash brought in, hidden goodwill.
01:07:20That is, if you have a change in P&R ratio, you will have a change in P&R ratio.
01:07:22As if you have a change in P&R ratio, all of the goodwill calculations.
01:07:24And goodwill is for incoming partners than you can do business.
01:07:2708.5.
01:07:39partners, partnership firm, that is goodwill. Incoming partner with you, goodwill is goodwill. Reverse. Incoming partner with you, image is your company.
01:07:54You have to work out a lot of illustration.
01:08:12So, although complications in the goodwill partnership, but in the revaluation, memorandum revaluation, concept will be simplified. Try to understand this. You have to work out a lot of illustration.
01:08:25Next, accounting treatment of goodwill in case of retirement of death of your partner. Retirement or death in relation, goodwill will be evaluated. That is a good example or illustration. Let us see.
01:08:37A, B, C are equal partners. C wanted to retire for which value of goodwill is considered 90,000. The necessary gel entry will be what?
01:09:05So, let's go. Rise the goodwill in the old ratio. Cancel the goodwill in the new ratio. A, B, C. Old ratio being 1 is to 1 is to 1. New ratio, C value is 1 is to 1.
01:09:27New ratio being 1 is to 1. New ratio being 1 is to 1. New ratio being 1 is to 1. New ratio.
01:09:34And then, triple 1 is to 1.0 is to 1 to 1. New ratio means 30, 30, 30, 30. This is credit. Debit, what is the 8. New ratio?
01:09:46So the answer being, A is capital debit, B is capital debit, B is capital debit,
01:10:16B is capital debit, B to C is capital, 30. Okay, I will continue the rest of the illustrations
01:10:42in the next class. I need one more session to complete the good one.