Question 3 Chapter 3 of Class 12 Part – 1 VK Publication

Question 3 Chapter 3 of Class 12 Part - 1 VK Publication
Question 3 Chapter 3 of Class 12 Part - 1 VK Publication

Question 3 Chapter 3 of Class 12 Part – 1

3. Calculate the amount of goodwill at two years purchase of the average profits of the last three years. The profits earned by the firm in the 1st and 2nd year were Rs. 1,05,275 and Rs. 30,000 respectively but there is a loss in the 3rd year of Rs. 5,000 due to labour strikes.

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

 

Average Profit = Total Profit for past given years
Number of years
     
  = 1,05,275+30,000-5,000
  3
     
  = 1,30,275
  3
     
  = 43,425

Goodwill = Average Profit x Number of Years’ Purchase = 43,425 x 2 = Rs. 86,8500.

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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

 

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

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