Question 14 Chapter 3 of Class 12 Part - 1 VK Publication

Question 14 Chapter 3 of Class 12 Part - 1

14. A firm earns a profit of Rs. 15,000 per year. In the same type of business a 10% return is generally expected. The total assets of the firm are Rs. 1,70,000 and the external liabilities are 60,000. Calculate the value of goodwill on the basis of capitalisation of super profit method.

The solution of Question 14 Chapter 3 of Class 12 Part - 1: -

Average Profit= Rs. 15,000
Capital Employed= Total Assets – External Liabilities
= 1,70,000-60,000 = Rs. 1,10,000

Normal Profit = Capital employed	X	Normal Rate of Return
		100

1,10,000	X	10
		100

= Rs.11,000

Super Profit= Average profit – Normal Profit
= 15,000-11,000= Rs. 4,000

Goodwill = Super profit	X	100
		Normal Rate of Return

4,000	X	100
		10

= Rs. 40,000

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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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