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Question 02 Chapter 3 of +2-Part-1
2. (Average Profit Method) Partner X is admitted in the firm of A and B for 1/5 share. Calculate new partners share in goodwill on the basis of the following information:
| Year | Profit/Loss | Amount |
| 2011 | Profit | 30,000 |
| 2012 | Profit | 50,000 |
| 2013 | Loss | 20,000 |
| 2014 | Profit | 40,000 |
| 2015 | Profit | 50,000 |
Goodwill is two times of the average profit of the last five years.
| Average Profit | = | Total Profit for past given years |
| Number of years | ||
| = | 30,000+ 50,000 +(-20,000)+ 40,000+ 50,000 | |
| 5 | ||
| = | 1,50,000 | |
| 5 | ||
| = | 30,000 |
| Number of years’ purchase | = | 2 |
| Goodwill | = | Average Profit X Number of years’ purchase |
| Goodwill | = | 30,000 X 2 |
| Goodwill | = | 60,000 |
| X's Share of Goodwill | = | Firm's Goodwill | X | X's Share |
| = | 60,000 | X | 1 | |
| 5 | ||||
| = | 12,000/- |
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Accounting & Commerce Educator
Sarbjit Singh holds a B.Com and M.Com degree and has over 12 years of teaching experience in double entry bookkeeping, financial accounting, and business studies.
This guide covers "Question 02 Chapter 3 of +2 Part-1 - USHA Publication 12 Class Part - 1", focusing on key definitions, step-by-step concepts, applications, and revision guidelines relevant to USHA Publication +2 Part 1.
It is primarily curated for Class 11 and Class 12 high school commerce, accounting, and economics students, as well as aspirants preparing for board exams or CA Foundation.
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