Loading Tutorstips...
✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Question 9 Chapter 3 - Unimax Class 12 Part 1
9. It was estimated that firm will every year make a profit of 5% on its Capital of Rs. 80000. The real average profits for the last four years are Rs. 5000. According to the partnership deed goodwill is valued at two year’s purchase of the super profits. Find out goodwill.
Normal Profits = Capital employed x Normal rate of return
= Rs. 80000 x 5/100
= Rs. 4000
Real Average Profits = Rs. 5000 (given)
Super Profits = Average Profits – Normal Profits
= Rs. 5000 – Rs. 4000
= Rs. 1000
Goodwill = Super Profits x Number of years of Purchase of Super Profit
= Rs. 1000 X 2 years
= Rs. 2000
https://tutorstips.com/what-is-partnership/
T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)
Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication
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 9 Chapter 3 - Unimax Class 12 Part 1 - 2021", focusing on key definitions, step-by-step concepts, applications, and revision guidelines relevant to Textbook Solution.
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.
You can take our custom-built interactive practice quiz directly on this page to test your understanding of "Question 9 Chapter 3 - Unimax Class 12 Part 1 - 2021" instantly.