Question 10 Chapter 3 of Class 12 Part - 1 VK Publication

Question 10 Chapter 3 of Class 12 Part – 1

Table of Contents

The solution of Question 10 Chapter 3 of Class 12 Part – 1: –

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

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

10. The capital employed in a firm is Rs. 5,00,000. Average rate of return on capital is 15%. The expected net profit of the firm is Rs. 1,50,000 for the year. The remuneration of the partners is estimated to be Rs. 25,000 p.a. Calculate the value of goodwill on the basis of two years’ purchase of super profit.

The solution of Question 10 Chapter 3 of Class 12 Part – 1: –

Normal Profit = Capital Employed x Normal Rate of Return
= 5,00,000 ×15/100 = Rs. 75,000
Average Profit = 1,50,000-25,000 = Rs. 1,25,000
Super Profit = Average Profit – Normal Profit
= 1,25,000-75,000 = Rs. 50,000
Goodwill= Super Profit x Number of Years’ Purchase
= 50,000 x 2 = Rs. 1,00,000

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Also, Check out the solved question of previous Chapters: –