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Question 18 Chapter 3 of +2-Part-1
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Table of Contents
18. (Capitalisation of super profit) The assets of a firm are Rs.26,000 and liabilities other than capital are Rs.6,000. The normal rate of profit in this type of business is 12½% whereas the firm earns a profit of Rs.8,400. Calculate the amount of goodwill on the basis of capitalization of the super profit method.
The solution of Question 18 Chapter 3 of +2 Part-1: –
Normal Profit | = | Capital Employed | X | Normal Rate of Return |
100 | ||||
= | 20,000 (i.e. 26,000-6,000) | X | 12.5 | |
100 | ||||
= | 2,500 |
Super Profit | = | Actual Profit – Normal Profit |
= | 8,400 – 2,500 | |
= | 5,900 |
Goodwill | = | Super Profit | X | 100 |
Normal Rate of Return | ||||
= | 5,900 | X | 100 | |
12.5 | ||||
= | 47,200 |
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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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How to find capital employed when assets are given and liability are not ?
If nothing is given in the question and please let liabilities Rs 0.
Why you solve it with NRR
of 10 precent
Thanks a lot.
It’s typing mistake.
the calculated amount is correct Rs 2,500