Working Note:
1. Valuation of Goodwill
Total Profits = 6,000 + 12,000 + 7,000 + 11,000 + 24,000
= 60,000
Average Profit = \(\frac{60000}5\) = 12,000
Goodwill = 12,000 × 2 = 24,000
Mukesh’s Share in Goodwill = 24,000 × \(\frac 16\) = 4,000
Goodwill is divided and debited to Rakesh and Mahesh’s Capital A/c in the ratio of 3:2
Rakesh = 4000 × \(\frac 35\) = 2,400
Mahesh = 4000 × \(\frac 25\) = 1,600
2. Calculation of Mukesh’s share in profit from 1st April 2019 to 1st July 2019
Total Profit of current year = Average profit of last 2 years profit
\(= \frac{12,000 + 24,000}2 \)
\(= \frac{36,000}2\)
\(\)= 18,000
Proportional Profit = 18,000 × \(\frac 3{12}\) = 4,500
Mukesh’s share in profit = 4,500 × \(\frac 16\) = 750