Question 18 Chapter 3 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 18 Chapter 3 of +2-Part-1

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% where as the firm earns a profit of Rs.8,400. Calculate the amount of goodwill on the basis of capitalization of 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	10
				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
• 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

 

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