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: –
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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