# Question 44 Chapter 3 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question 44 Chapter 3 of +2-A

44. Rajan and Rajani are partners in a firm. Their capitals were Rajan 3,00,000; Rajani 2,00,000. During the year 2018−19, the firm earned a profit of 1,50,000. Calculate the value of goodwill of the firm by the capitalization of super profit assuming that the normal rate of return is 20%.

## The solution of Question 44 Chapter 3 of +2-A:

 Normal Profit = Capital Employed X Normal Rate of Return 100
 = 5,00,000 X 20 100 = 1,00,000
 Super Profit = Actual Profit – Normal Profit = 1,50,000 – 1,00,000 = 50,000
 Goodwill = Super Profit X 100 Normal Rate of Return
 = 50,000 X 100 20 = 2,50,000

### 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