Question 01 Chapter 3 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 01 Chapter 3 of +2- Part-

Question 01 Chapter 3 of +2-Part-1

Average Profit Method

1.  Rana and Soun are sharing profits 11:9 ratio. Their goodwill is to be valued at two years purchase of average profits for the last three years. Profits of last years are Rs.70,000; Rs.30,000 and Rs.50,000.

 

The solution of Question 01 Chapter 3 of +2 Part-1: – 

 

Average Profit = Total Profit for past given years
    Number of years
     
  = 70,000 + 30,000 + 50,000
  3
     
  = 1,50,000
  3
     
  = 50,000

 

Number of years’ purchase = 2
Goodwill = Average Profit X Number of years’ purchase
Goodwill = 50,000 X 2
Goodwill = 1,00,000



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

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

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

 

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2 Book 1 min - Question 01 Chapter 3 of +2 Part-1 - USHA Publication  12 Class Part - 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

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