Question 1 Chapter 3 of Class 12 Part - 1 VK Publication

Question 1 Chapter 3 of Class 12 Part - 1

1. Calculate the amount of goodwill at three years' purchase of the last four years average
profits. The profits and losses tor the last four years were: 1st year Rs. 5,000; 2nd year Rs. 8,000 3rd year (Loss) Rs. 3,000 and 4th year Rs. 6,000.

The solution of Question 1 Chapter 3 of Class 12 Part - 1: -

 

Average Profit	=	Total Profits
		Number of years
	=	5,000+8,000-3,000+6,000
		4
	=	16,000
		4
	=	4,000

Goodwill = Average Profit x Number of Years' Purchase
= 4,000 x 3 = Rs. 12,000.

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Also, Check out the solved question of previous Chapters: -

Usha Publication - Accountancy PSEB (Class 12) - Volume I - Solution

• Chapter No. 1 - Accounting Not for Profit Organisations
• Chapter No. 2 - Partnership Accounts - I (Introduction)
• Chapter No. 3 - Partnership Accounts - II (Goodwill: Nature and Valuation)
• Chapter No. 4 - Partnership Accounts - III (Reconstitution of Partnership)
• Chapter No. 5 - Partnership Accounts - IV (Admission of A Partner)
• Chapter No. 6 - Partnership Accounts - V (Retirement and Death of A Partner)
• Chapter No. 7 - Partnership Accounts - VI (Dissolution of Partnership Firm)
• Chapter No. 8 - Company Accounts (Share Capital)
• Chapter No. 9 - Company Accounts (Issue of Debentures)
• Chapter No. 10 - Company Accounts (Redemption of Debentures)

Usha Publication - Accountancy PSEB (Class 12) - Volume II - Solution

• Chapter No. 1 - Financial Statements of a Company
• Chapter No. 2 - Financial Statement Analysis
• Chapter No. 3 –  Tools of Financial Statement Analysis- Comparative and Common Size
• Chapter No. 4 - Ratio Analysis
• Chapter No. 5 - Cash Flow Statement

 

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