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Question 13 Chapter 3 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 13 Chapter 3 of +2- Part-
Q-13 - CH-3 - Usha +2 Book 2018 - Solution

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Question 13 Chapter 3 of +2-Part-1

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13. (Super Profit Method) X and Y have capital of Rs.1,00,000 and Rs.60,000.
The reserve are Rs.50,000 and creditors are Rs.10,000. Normal rate of return expected in this type of business is 10%.
The goodwill is valued Rs.50,000 at two years purchase of super profit. Find out average profits.

The solution of Question 13 Chapter 3 of +2 Part-1: – 

Capital Employed=1,00,000 + 60,000 + 50,000
 =2,10,000

 

Normal Profit=Capital EmployedXNormal Rate of Return
 100
     
 =2,10,000X10
 100
     
 =21,000  
Goodwill of Firm=50,000(Given)  

 

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Super Profit=Firm Goodwill
 Number of years
   
 =50,000
 2
   
 =25,000

 

 

Average Profit=Normal Profit + Super Profit
 =21,000 + 25,000
 =46,000

 

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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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