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Question 14 Chapter 3 of Class 12 Part – 1 VK Publication

Question 14 Chapter 3 of Class 12 Part - 1 VK Publication
Question 14 Chapter 3 of Class 12 Part - 1 VK Publication

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Question 14 Chapter 3 of Class 12 Part – 1

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14. A firm earns a profit of Rs. 15,000 per year. In the same type of business a 10% return is generally expected. The total assets of the firm are Rs. 1,70,000 and the external liabilities are 60,000. Calculate the value of goodwill on the basis of capitalisation of super profit method.

The solution of Question 14 Chapter 3 of Class 12 Part – 1: –

Average Profit= Rs. 15,000
Capital Employed= Total Assets – External Liabilities
= 1,70,000-60,000 = Rs. 1,10,000

Normal Profit = Capital employedXNormal Rate of Return
100
1,10,000X10
100

= Rs.11,000

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Super Profit= Average profit – Normal Profit
= 15,000-11,000= Rs. 4,000

Goodwill = Super profitX100
Normal Rate of Return
4,000X100
10

= Rs. 40,000

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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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