# Question 06 Chapter 3 of +2 Part-1 – USHA Publication 12 Class Part – 1

Q-6 - CH-3 - Usha +2 Book 2018 - Solution

Question 06 Chapter 3 of +2-Part-1

6. (Calculate goodwill when partners capital are given) A firm of partner A, B and C has fixed capital of Rs.1,00,000, Rs.80,000 and Rs.1,20,000 respectively. Interest on capital is allowed @10% p.a. The profits of last four years before interest on capital were: I year: Rs.50,000; II Year: Rs.40,000; III year: Rs.70,000; IV year: Rs.60,000. Partners have been allowed salary of Rs.80,000 in total during the above four years.
As per agreement goodwill of the firm is to be valued at 2½ years of the average net profits of the last four years.

## The solution of Question 06 Chapter 3 of +2 Part-1: –

Day - 53 | Questions of Goodwill Ch. 3 Partnership - II | Accounts class 12 | PSEB | Sarbjit Singh |

 Average Profit = Total Profit for past given years Number of years = 20,000 + 10,000 + 40,000 + 30,000 4 = 1,00,000 4 = 25,000

 Number of years’ purchase = 2 Goodwill = Average Profit X Number of years’ purchase Goodwill = 25,000 X 2.5 Goodwill = 62,500

Working Note : –

*1 Calculation of Profits of last three years

 Adjusted Profit for 1st year = Total Profit −Interest on capital = 50,000 –(10,000 + 8,000 + 12,000) = 20,000

 Adjusted Profit for 2nd year = Total Profit – Interest on capital = 40,000 –(10,000 + 8,000 + 12,000) = 10,000

 Adjusted Profit for 3rd year = Total Profit − Interest on capital = 70,000 –(10,000 + 8,000 + 12,000) = 40,000

 Adjusted Profit for 3rd year = Total Profit − Interest on capital = 60,000 –(10,000+8,000+12,000) = 30,000

Every year, interest on capital will be deducted amounting to Rs.3,000 for four years.

Comment if you have any questions.

End of Solution

## Check Out the Solution of all questions of this chapter:

The solution to all questions of Chapter No. 3 – Partnership Accounts – II (Goodwill: Nature and Valuation) Class 12 Usha Publication – 2024 is shown as follows, click on the image of the question to get the solution.

Question 01 Chapter 3 of +2-Part-1 Average Profit Method 1.  Rana and Soun are sharing profits 11:9 ratio. Their goodwill ...
Question 02 Chapter 3 of +2-Part-1 2. (Average Profit Method) Partner X is admitted in the firm of A and ...
Question 03 Chapter 3 of +2-Part-1 3. (Average Profit Method) Calculate goodwill at two years of purchase of average profits ...

Question 04 Chapter 3 of +2-Part-1 4. (Average Profit Method) Rani purchased Vani’s business on 31st March 2015. The profit ...
Question 05 Chapter 3 of +2-Part-1 5. (Average Profit Method) Goodwill is to be valued at two years purchase of ...
Question 06 Chapter 3 of +2-Part-1 6. (Calculate goodwill when partners capital are given) A firm of partner A, B ...
Question 07 Chapter 3 of +2-Part-1 7. (Profit & Loss on fixed asset are given) In a firm of partners ...
Question 08 Chapter 3 of +2-Part-1 8. (Weighted Average Profit Method) The profits of Ram Mills for the last five ...

Question 09 Chapter 3 of +2-Part-1 9. (Weighted Average Profit Method) Calculate the value of goodwill of a firm on ...
Question 10 Chapter 3 of +2-Part-1 10. (Super Profit Method) A partnership firm earned net profits during the last three ...
Question 11 Chapter 3 of +2- Usha 11. (Super Profit Method) A firm earned net profit during the last five ...
Question 12 Chapter 3 of +2-Part-1 12. (Super Profit Method) A firm has total assets of Rs.2,50,000 including cash of ...

Question 13 Chapter 3 of +2-Part-1 13. (Super Profit Method) X and Y have capital of Rs.1,00,000 and Rs.60,000.The reserve ...
Question 14 Chapter 3 of +2-Part-1 14. (Super Profit Method) Calculate goodwill at two years purchase of super-profits. Normal rate ...
Question 15 Chapter 3 of +2-Part-1 15. (Capitalisation Method) The average net profits expected in future by Ram Gopal and ...
Question 16 Chapter 3 of +2-Part-1 16. (Capitalisation Method) A firm earns Rs.1,00,000 as its annual profits, the rate of ...
Question 17 Chapter 3 of +2-Part-1 17. (Capitalisation Method) The average net profits expected in future by Ram Gopal and ...

Question 18 Chapter 3 of +2-Part-1 18. (Capitalisation of super profit) The assets of a firm are Rs.26,000 and liabilities ...
Question 19 Chapter 3 of +2-Part-1 18. (Avg Profit/ Super Profit/Capitalisation method) The following information relates to a partnership firm: ...
Question 20 Chapter 3 of +2-Part-1 20. (Super Profit/Capitalisation method) A firm earns a profit of Rs.5,000 per year. The ...
Question 22 Chapter 3 of USHA Publication 12 Class Part - 1 22. (Super Profit Method) A partnership firm earned ...

Question 24 Chapter 3 of USHA Publication 12 Class Part - 1 24. (Calculation of Super Profits and Average Profits ...
Question 25 Chapter 3 of USHA Publication 12 Class Part - 1 25. (Average Profits Method/When profits are given) B ...
Question 26 Chapter 3 of USHA Publication 12 Class Part - 1 26. (Capitalisation of S.P./S.P. Method) A business has ...

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## Chapter-Wise Solution of Usha Publication Accountancy – Part 1 Class 12 – Session 2024-25 as per the PSEB curriculum

Check out Solutions to all questions of the every chapter shown as under. The Solution of Accountancy – Part 1 Class 12 – Session 2024-25 is provided as per the new book published by Usha Publication.

Chapter No. 1 – Accounting Not-for-Profit Organisations (Deleted from the Syllabus)

Chapter No. 2 – Partnership Accounts – I (Introduction)

Chapter No. 3 – Partnership Accounts – II (Goodwill: Nature and Valuation)

Chapter No. 4 – Partnership Accounts – III (Reconstitution of Partnership)

Chapter No. 5 – Partnership Accounts – IV (Admission of A Partner)

Chapter No. 6 – Partnership Accounts – V (Retirement and Death of A Partner)

Chapter No. 7 – Partnership Accounts – VI (Dissolution of Partnership Firm)

## Check out Part 2 of both books.

In Class 12th the accountancy has 2 books i.e. Part 1 and Part 2. The Books related to the Part 1 are shown above. but If you want to know more about Part 2, you can check it out from the following links. We have provided the links to both books i.e. Accountancy Part 2 by Usha Publication and Advanced Accountancy Part 2 by Unimax Publication.

1. Accountancy – Part 2 Class 12 – Session 2024-25 By Usha Publication

2. Advanced Accountancy Part 2 Class 12 by Unimax Publication