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Question 23 Chapter 3 of USHA Publication 12 Class Part – 1

Question 23 Chapter 3 of +2 Part-1 - USHA Publication 12 Class Part - 1
Question 23 Chapter 3 of +2 Part-1 - USHA Publication 12 Class Part - 1

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Question 23 Chapter 3 of USHA Publication 12 Class Part – 1

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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 AdjustmentN/P
2015     50,000              –50,000
2016     30,000            10,50020,500
2017     35,000             95035,950
Total         151,06,450
   
Average Adjusted profit=Total adjusted profit
  No. of year purchases
 =1,06,450
  3
                                               =35,483.33

 

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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

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

 

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

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Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

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