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

Question 44 Chapter 3 of +2-A

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 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)

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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2 Book 1 min - Question 44 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

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