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

Question 12 Chapter 3 of +2- Part-
Q-12 - CH-3 - Usha +2 Book 2018 - Solution

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Question 12 Chapter 3 of +2-Part-1

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12. (Super Profit Method) A firm has total assets of Rs.2,50,000 including cash of Rs.30,000.The creditors are Rs.40,000. Normal rate of return is 10% on capital employed. Goodwill of the firm is valued at Rs.1,20,000 at four years purchase of super profits. Find the average profits.

 

The solution of Question 12 Chapter 3 of +2 Part-1: – 

 

Capital Employed=Total Assets – Liabilities
 =2,50,000 – 40,000
 =2,10,000

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Normal Profit=Capital EmployedXNormal Rate of Return
 100
     
 =2,10,000X10
 100
     
 =21,000  
Goodwill of Firm=1,20,000(Given)  

 

Super Profit=Firm Goodwill
 Number of years
   
 =1,20,000
 4
   
 =30,000

 

 

Average Profit=Normal Profit + Super Profit
 =21,000 + 30,000
 =51,000

 

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Comment if you have any questions.

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
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

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