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

Question 32 Chapter 3 of +2-A

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)

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

 

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

2 Book 1 min - Question 32 Chapter 3 of +2-A - T.S. Grewal 12 Class Part - A Vol. 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

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