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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
A and B were partners in a firm with capitals of ₹3,00,000 and ₹2,00,000 respectively. The normal rate of return was 20% and the capitalised value of average profits was ₹7,50,000. Calculate the goodwill of the firm by the Capitalisation of Average Profits Method. (CBSE 2020)
Total Actual Capital Employed = ₹3,00,000 + ₹2,00,000 = ₹5,00,000.
Capitalised Value of Average Profits = ₹7,50,000.
Goodwill = Capitalised Value – Capital Employed = ₹7,50,000 – ₹5,00,000 = ₹2,50,000.
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 "T.S. Grewal Class 12 Chapter 2 Q.27 - Nature and Valuation of Goodwill", focusing on key definitions, step-by-step concepts, applications, and revision guidelines relevant to Chapter 2 - Nature and Valuation of Goodwill.
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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