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

Question 37 Chapter 3 of +2-A

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)

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 37 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

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.