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

Question 18 Chapter 3 of +2- Part-

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

 

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

2 Book 1 min - Question 18 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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