# Question 32 Chapter 3 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question 32 Chapter 3 of +2-A

32. Supreet and Shubham are equal partners. They decide to admit Akriti for 1/3rd share. For the purpose of admission of Akriti, goodwill of the firm is to be valued at four years’ purchase of super profit. Average capital employed in the firm is 1,50,000. Normal rate of return may be taken as 15% p.a. Average profit of the firm is 40,000. Calculate value of goodwill.

The solution of Question 32 Chapter 3 of +2-A

:

 Super Profit = 40,000

 Normal Profit = Capital Employed X Normal Rate of Return 100
 = 1,50,000 X 15 100 = 22,500

 Super Profit = 40,000- 22,500 = 17,500

Number of years’ purchase = 4

 Goodwill = Super Profit X number of years’ purchase Goodwill = 17,500 x 4 Goodwill = 70,000

### T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)

• Chapter No. 1 – Financial Statement of Not-For-Profit Organisations
• Chapter No. 2 – Accounting for Partnership Firms – Fundamentals
• Chapter No. 3 – Goodwill: Nature and Valuation
• Chapter No. 4 – Change in Profit-Sharing Ratio Among the Existing Partners
• Chapter No. 5 – Admission of a Partner
• Chapter No. 6 – Retirement/Death of a Partner
• Chapter No. 7 – Dissolution of a Partnership Firm

### T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

• Chapter No. 1 – Financial Statements of a Company
• Chapter No. 2 – Financial Statement Analysis
• Chapter No. 3 – Tools of Financial Statement Analysis – Comparative Statements and Common- Size Statements
• Chapter No. 4 – Accounting Ratios
• Chapter No. 5 – Cash Flow Statement

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