Loading Tutorstips...
✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Aayush and Aarushi are partners sharing profits and losses in the ratio of 3 : 2. They admitted Naveen into partnership for a 1/4th share. Goodwill of the firm was to be valued at three years’ purchase of super profits. Average net profit of the firm was ₹20,000, capital investment in the business was ₹50,000, and the Normal Rate of Return was 10%. Calculate the amount of goodwill premium brought by Naveen. (CBSE 2023)
Normal Profit = ₹50,000 × 10% = ₹5,000. Super Profit = ₹20,000 – ₹5,000 = ₹15,000. Goodwill = ₹15,000 × 3 = ₹45,000.
Naveen’s share of goodwill premium = ₹45,000 × 1/4 = ₹11,250.
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 4 Q.26 - Admission of a Partner", focusing on key definitions, step-by-step concepts, applications, and revision guidelines relevant to Chapter 4 - Admission of a Partner.
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 "T.S. Grewal Class 12 Chapter 4 Q.26 - Admission of a Partner" instantly.