# Question 43 Chapter 3 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question No.43 Chapter No.3 - T.S. Grewal +2 Book 2019-Solution

Question 43 Chapter 3 of +2-A

43. Average profit of the firm is 2,00,000. Total assets of the firm are 15,00,000 whereas Partners’ Capital is 12,00,000. If normal rate of return in a similar business is 10% of the capital employed, what is the value of goodwill by Capitalisation of Super Profit?

## The solution of Question 43 Chapter 3 of +2-A:

 Normal Profit = Capital Employed X Normal Rate of Return 100
 = 12,00,000 X 10 100 = 1,20,000
 Super Profit = Actual Profit – Normal Profit = 2,00,000 – 1,20,000 = 80,000
 Goodwill = Super Profit X 100 Normal Rate of Return
 = 80,000 X 100 10 = 8,00,000

### 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