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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: –
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Capital Employed | = | 1,00,000 + 60,000 + 50,000 |
= | 2,10,000 |
Normal Profit | = | Capital Employed | X | Normal Rate of Return |
100 | ||||
= | 2,10,000 | X | 10 | |
100 | ||||
= | 21,000 | |||
Goodwill of Firm | = | 50,000(Given) |
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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Also, Check out the solved question of previous Chapters: –
Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution
- Chapter No. 1 – Accounting Not for Profit Organisations
- 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)
- Chapter No. 8 – Company Accounts (Share Capital)
- Chapter No. 9 – Company Accounts (Issue of Debentures)
- Chapter No. 10 – Company Accounts (Redemption of Debentures)
Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution
- Chapter No. 1 – Financial Statements of a Company
- Chapter No. 2 – Financial Statement Analysis
- Chapter No. 3 – Tools of Financial Statement Analysis- Comparative and Common Size
- Chapter No. 4 – Ratio Analysis
- Chapter No. 5 – Cash Flow Statement
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