Question 02 Chapter 3 of +2-A
Table of Contents
2. Profits for the five years ending on 31st March, are as follows: the Year 2015 − 4,00,000; Year 2016 − 3,98,000; Year 2017 − 4,50,000; Year 2018 − 4,45,000 and Year 2019 − 5,00,000. Calculate goodwill of the firm on the basis of 4 years’ purchase of 5 years’ average profit.
The solution of Question 02 Chapter 3 of +2-A:
| Average Profit | = | Total Profit for past given years |
| Number of years |
| Average Profit | = | 4,00,000+3,98,000+4,50,000+4,45,000+ 5,00,000 |
| 5 |
| = | 21,93,000 | |
| 5 | ||
| = | 4,38,600 |
Number of years’ purchase = 4
| Goodwill | = | Average Profit X Number of years’ purchase |
| Goodwill | = | 4,38,600 X 4 |
| Goodwill | = | 17,54,400 |
Also, Check out the solved question of previous Chapters: –
T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)
- Chapter No. 1 – Financial Statement of Not-For-Profit Organisations
- Chapter No. 2 – Accounting for Partnership Firms – Fundamentals
- Chapter No. 3 – Goodwill: Nature and Valuation
- Chapter No. 4 – Change in Profit-Sharing Ratio Among the Existing Partners
- Chapter No. 5 – Admission of a Partner
- Chapter No. 6 – Retirement/Death of a Partner
- Chapter No. 7 – Dissolution of a Partnership Firm
T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)
- Chapter No. 8 – Company Accounts – Accounting for Share Capital
- Chapter No. 9 – Company Accounts – Issue of Debentures
- Chapter No. 10 – Redemption of Debentures
T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)
- Chapter No. 1 – Financial Statements of a Company
- Chapter No. 2 – Financial Statement Analysis
- Chapter No. 3 – Tools of Financial Statement Analysis – Comparative Statements and Common- Size Statements
- Chapter No. 4 – Accounting Ratios
- Chapter No. 5 – Cash Flow Statement
Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication
