Dividend A/c will be credited with gross amount of Rs. 10,000 (9,200 + 800)

To write off the trade payables, we will charge the amount to P&L A/c with corresponding credit to suppliers.

Gross profit is a company’s revenue minus its cost of goods sold. Gross profit is a company’s residual profit after selling a product or service and deducting the cost associated with its production and sale.
Cost of goods sold is the direct costs attributable to the production or purchase of the goods sold by a company. It excludes indirect expenses such as distribution costs and sales force cost.
Cost of goods sold in the above case = Rs. 30,000
Profit = sales – cost of goods sold = 40,000 – 30,000 = Rs. 10,000

Under this method we calculate the average profits and then assess the capital needed for earning such average profits on the basis of normal rate of return, such capital is called capitalized value of average profits. After arriving at the capitalized average profit, Capital employed (assets – liabilities) of the firm
is then subtracted from the capitalized value of average profits to arrive at the Goodwill,. To calculate goodwill using average profit, the average net profit for a given number of past years are multiplied by an agreed number of years.
Mathematically, Capitalized Value of Average Profits = Average Profits × (100 / Normal Rate of Return)
Goodwill = Capitalized Value of Average Profits – Capital Employed.
Here profit for the year = 12,00,000
Reasonable rate of return = 15%
Thus capitalized value of profit = 12,00,000 × 100/15 = 80,00,000
Capital employed = 80,00,000
Thus Goodwill = 80,00,000 – 80,00,000 = NIL.

When a new partner comes into the business, old partners have to give him his profit share from their portion. Thus change in profit sharing ratio is an important aspect to be considered on reconstitution by admission. In academic accounting, change in profit sharing ratio can be presented in various ways. The
existing partners may decide to change their profit sharing ratio for various reasons. When the profit sharing ratio is revised among existing partners, there ought to be a partial sacrifice of profit share by some partners in favour of others. The sacrifice of one or a group of partners becomes the gain of the
remaining partners. Following is the formula for calculating new ratio:
New ratio = Old ratio – Sacrificing ratio

A joint venture (JV) is a business agreement in which the parties agree to develop, for a finite time, a new entity and new assets by contributing equity. They exercise control over the enterprise and consequently share revenues, expenses and assets.Profit on venture can be ascertained with the help of the joint venture account.Goods bought on joint venture as well as expenses incurred in connection with the business are debited to the joint venture account and credited to the coventurer’s account or the joint bank account. When the goods are sold, the amount thereof is debited to the coventurer’s account or the joint bank account and
credited to the joint venture account. If the parties have taken over plant or materials etc., the value will be debited to the account of the party concerned and credited to the joint venture account. The joint venture account will now show profit or loss which will be transferred to the personal accounts of the respective parties in their profit sharing ratio