# Question 2 Chapter 3 – Unimax Class 12 Part 1 – 2021

Question 2 Chapter 3 – Unimax Class 12 Part 1

2. Calculate the firm’s Goodwill as on 1.1.21 on the basis of 2 years’ purchase of average normal profit of the last three years which are following :

 Year 2018 Rs. 40000 (including abnormal gain Rs. 4000) 2019 Rs. 50000 (after charging an abnormal loss of Rs. 10000) 2020 Rs. 45000 (excluding Rs. 6000 as insurance premium of firm’s property-now to be insured.

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

 Profit for the year 2004 40000 Less Abnormal Gain (already added) 4000 36000 Profit for the year 2005 50000 Add Abnormal loss (already deducted) 10000 60000 Profit for the year 2006 45000 Less Insurance Premium 6000 39000 Total adjusted profits 135000

Average Profits = Total Profits/ No. of years
= Rs. 135000/3
= Rs.45000
Goodwill = Average Profits x No. of years of purchase of average
= Rs. 45000 x 2
= Rs. 90000

What is Partnership – Meaning and its Types

T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)