Question 02 Chapter 3 of +2-Part-1
2. (Average Profit Method) Partner X is admitted in the firm of A and B for 1/5 share. Calculate new partners share in goodwill on the basis of the following information:
| Year | Profit/Loss | Amount |
| 2011 | Profit | 30,000 |
| 2012 | Profit | 50,000 |
| 2013 | Loss | 20,000 |
| 2014 | Profit | 40,000 |
| 2015 | Profit | 50,000 |
Goodwill is two times of the average profit of the last five years.
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The solution of Question 02 Chapter 3 of +2 Part-1: –
| Average Profit | = | Total Profit for past given years |
| Number of years | ||
| = | 30,000+ 50,000 +(-20,000)+ 40,000+ 50,000 | |
| 5 | ||
| = | 1,50,000 | |
| 5 | ||
| = | 30,000 |
| Number of years’ purchase | = | 2 |
| Goodwill | = | Average Profit X Number of years’ purchase |
| Goodwill | = | 30,000 X 2 |
| Goodwill | = | 60,000 |
| Honest | = | 60,000 | X | 1 |
| 5 | ||||
| = | 12,000/- |
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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
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