Question 23 Chapter 3 of USHA Publication 12 Class Part – 1
Table of Contents
23. (Average Adjusted Profits) M, P and Q are partners in 2 : 1 : 3 ratio. Their profits for the last three years were 35,000 in 2017 ;₹ 30,000 in 2016 and ₹ 50,000 in 2015. During 2016 (mid of year) a major repair for ₹ 10,000 was wrongly capitalized to the value of building. Building is depreciated at 10% p.a. on W.D.V. Goodwill is valued at 2 years purchase of average profits of last three years after adjusting the profits.
The solution of Question 23 Chapter 3 of USHA Publication 12 Class Part – 1: –
| Year | Profit | Adjustment | N/P |
| 2015 | 50,000 | – | 50,000 |
| 2016 | 30,000 | 10,500 | 20,500 |
| 2017 | 35,000 | 950 | 35,950 |
| Total | 15 | 1,06,450 |
| Average Adjusted profit | = | Total adjusted profit |
| No. of year purchases | ||
| = | 1,06,450 | |
| 3 | ||
| = | 35,483.33 |
| Goodwill | = | Average Adjusted Profit x Number of years’ purchase |
| Goodwill | = | 35,483.33 x 2 |
| Goodwill | = | 70,0966.67 |
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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 (Introduction)
- Chapter No. 3 – Partnership Accounts – II (Goodwill: Nature and Valuation)
- Chapter No. 4 – Partnership Accounts – III (Reconstitution of Partnership)
- Chapter No. 5 – Partnership Accounts – IV (Admission of A Partner)
- Chapter No. 6 – Partnership Accounts – V (Retirement and Death of A Partner)
- Chapter No. 7 – Partnership Accounts – VI (Dissolution of Partnership Firm)
- 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
- Chapter No. 2 – Financial Statement Analysis
- Chapter No. 3 – Tools of Financial Statement Analysis- Comparative and Common Size
- Chapter No. 4 – Ratio Analysis
- Chapter No. 5 – Cash Flow Statement
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