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Question 42 Chapter 3 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question 42 Chapter 3 of +2-A
Question No.42 Chapter No.3 - T.S. Grewal +2 Book 2019-Solution

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Question 42 Chapter 3 of +2-A

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42. On 1st April, 2018, a firm had assets of 1,00,000 excluding stock of 20,000. The current liabilities were 10,000 and the balance constituted Partners’ Capital Accounts. If the normal rate of return is 8%, the Goodwill of the firm is valued of 60,000 at four years’ purchase of super profit, find the actual profits of the firm.

The solution of Question 42 Chapter 3 of +2-A:

Total Assets of the firm=Sundry Assets + Stock
 =1,00,000 + 20,000
 =1,20,000
Capital Employed=Total Assets- Current Liabilities
 =1,20,000 – 10,000
 =1,10,000
Normal Profit=Capital EmployedXNormal Rate of Return
100
 =1,10,000X8
100
 =8,800  

 

Super Profit=Goodwill
Number of years of Purchase
 =60,000
4
 =15,000
Average Actual Profit=Super Profit + Normal Profit
 =15,000 + 8,800
 =23,800

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

 

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

+2 Book 1-min
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

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