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

Question 18 Chapter 3 of +2- Part-
Q-18 - CH-3 - Usha +2 Book 2018 - Solution

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Question 18 Chapter 3 of +2-Part-1

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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 EmployedXNormal Rate of Return
 100
     
 =20,000 (i.e. 26,000-6,000)X12.5
 100
     
 =2,500  

 

Super Profit=Actual Profit – Normal Profit
 =8,400 – 2,500
 =5,900

 

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Goodwill=Super ProfitX100
 Normal Rate of Return
     
 =5,900X100
 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

Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution

 

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