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

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

Thanks, Please Like and share with your friends  

Comment if you have any questions.

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
• Chapter No. 3 – Partnership Accounts – II (Introduction)
• Chapter No. 4 – Partnership Accounts – III (Goodwill: Nature and Valuation)
• Chapter No. 5 – Partnership Accounts – IV (Reconstitution of Partnership)
• Chapter No. 6 – Partnership Accounts – V (Admission of A Partner)
• Chapter No. 7 – Partnership Accounts – VI (Retirement and Death of A Partner)
• 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 (Balance Sheet Only)
• Chapter No. 2 – Techniques of Financial Statement Analysis
• Chapter No. 3 – Ratio Analysis 
• Chapter No. 4 – Cash Flow Statement

 

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication