Question 02 Chapter 3 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 02 Chapter 3 of +2- Part-

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.

 

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

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

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

2 Book 1 min - Question 02 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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