# Question 37 Chapter 3 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question 37 Chapter 3 of +2-A

37. From the following information, calculate the value of goodwill of the firm by applying Capitalisation Method: Total Capital of the firm 16,00,000.
The normal rate of return 10%. Profit for the year 2,00,000

The solution of Question 37 Chapter 3 of +2-A

:

 Capitalized Value of Profit = Profit X 100 Normal Rate of Return
 = 2,00,000 X 100 10 = 20,00,000

 Actual Capital = 16,00,000

 Goodwill = Capitalized value of Profit – Actual Capital = 20,00,000 – 1,60,000 = 4,00,000

### 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