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Question 17 Chapter 3 of +2-Part-1
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17. (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 goodwill of the firm by the capitalization of average method.
The solution of Question 17 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 (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
Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication
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