Advertisement

Question 2 Chapter 3 of Class 12 Part – 1 VK Publication

Question 2 Chapter 3 of Class 12 Part - 1 VK Publication
Question 2 Chapter 3 of Class 12 Part - 1 VK Publication

Advertisement

Question 2 Chapter 3 of Class 12 Part – 1

Advertisement

2. Karnail purchased Jarnaiľs business on 1st April, 2017. The profits for the last 3 years are:
31st March, 2015- Rs. 40,000 (including an abnormal profit of Rs. 5,000)
31st March, 2016- Rs. 50,000 (after charging an abnormal loss of Rs. 10,000
31st March, 2017- Rs. 45,000 (excluding Rs. 5,000 as insurance premium of this year.)
Calculate the value of goodwill on the basis of two years’ of purchase of the average profit of the last three years.

The solution of Question 2 Chapter 3 of Class 12 Part – 1: –

Particulars 

31st March , 2015

31st March, 2016

31st March, 2017
Net Profit40,00050,00045,000
Less: Abnormal Profit5,000
Add: Abnormal Loss10,000
Less: Insurance Premium5,000
Adjusted Net Profit35,00060,00040,000

 

Average Profit=Total Profits
Number of years
   
 =35,000 + 60,000 + 40,000
 3
   
 =1,35,000
 3
   
 =45,000

Goodwill = Average Profit x Number of Years’ Purchase = 45,000 x 2 = Rs. 90,000.

Advertisement-X

Thanks, Please Like and share with your friends  

Comment if you have any questions.

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

 

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

+2 Book 1-min
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

Advertisement

Advertisement

error: Content is protected !!