Question 15 Chapter 3 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 15 Chapter 3 of +2- Part-

Question 15 Chapter 3 of +2-Part-1

15. (Capitalisation Method) The average net profits expected in future by Ram Gopal and Sons are Rs.25,000 per year. The average capital employed in the business by the firm is Rs.1,80,000. The normal rate of return on the capital employed in similar business is 10%. Calculate the goodwill of the firm by the capitalization of the average method.

 

The solution of Question 15 Chapter 3 of +2 Part-1: – 

 

Capitalised value of the business = Average Profit X 100
  Normal Rate of Return
         
  = 25,000 X 100
  10
         
  = 2,50,000    

 

Goodwill = Capitalised value of the business – Average Capital Employed
  = 2,50,000- 1,80,000
  = 70,000

 

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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
  • Chapter No. 3 – Partnership Accounts – II (Introduction)
  • Chapter No. 4 – Partnership Accounts – III (Goodwill: Nature and Valuation)
  • Chapter No. 5 – Partnership Accounts – IV (Reconstitution of Partnership)
  • Chapter No. 6 – Partnership Accounts – V (Admission of A Partner)
  • Chapter No. 7 – Partnership Accounts – VI (Retirement and Death of A Partner)
  • 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 (Balance Sheet Only)
  • Chapter No. 2 – Techniques of Financial Statement Analysis
  • Chapter No. 3 – Ratio Analysis 
  • Chapter No. 4 – Cash Flow Statement

 

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

2 Book 1 min - Question 15 Chapter 3 of +2 Part-1 - USHA Publication  12 Class Part - 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

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