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

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 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

 

Normal Profit = Capital Employed X Normal Rate of Return
  100
         
  = 2,10,000 X 10
  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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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

 

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