# Question 24 Chapter 3 of USHA Publication 12 Class Part – 1

Question 24 Chapter 3 of +2 Part-1 - USHA Publication 12 Class Part - 1

Question 24 Chapter 3 of USHA Publication 12 Class Part – 1

24. (Calculation of Super Profits and Average Profits when Goodwill and Total Assets are given) Ludhiana Garments has total assets (excluding goodwill) of ₹ 1,87,500, including cash of ₹ 12,500. The Capital account of partners X and Y showed a balance of ₹ 1,20,000 and the balance was reserves. Normal rate of return was 10% and the goodwill was valued ₹ 60,000 at four year’s purchase of super profits. Find out average profits of the firm.

## The solution of Question 24 Chapter 3 of USHA Publication 12 Class Part – 1: –

 Goodwill = Super Profits x Number of years’ purchase Super Profit = Goodwill No. of year purchases = 60,000 4 = 15,000 Super Profit = Average – Normal Profit Average Profit = Super Profit + Normal Profit = 15,000 + 18,750 = 33,750

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Also, Check out the solved question of previous Chapters: –