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Question 5 Chapter 3 of Class 12 Part – 1 VK Publication

Question 5 Chapter 3 of Class 12 Part - 1 VK Publication
Question 5 Chapter 3 of Class 12 Part - 1 VK Publication

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Question 5 Chapter 3 of Class 12 Part – 1

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5. A partnership firm’s profits for the last five years’ were Rs. 37,000; Rs. 48,000; Rs. 22,000 Rs. 65,000; and Rs. 30,00. Calculate goodwill on the basis of four years’ purchase of weighted average profit using the weights 1,2,3,4 and 5 respectively.

The solution of Question 5 Chapter 3 of Class 12 Part – 1: –

Year

Profit 

Weight

Product
I37,000137,000
II48,000296,000
III22,000366,000
IV65,00042,60,000
V30,00051,50,000
Total 156,09,000

 

Weighted Average Profit=Total Product
Total Weight
   
 =6,09,000
 15
   
 =6,09,000
 15
   
 =40,600

Goodwill = Average Profit x Number of Years’ Purchase = 40,600 x 2 = Rs. 1,63,400.

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Also, Check out the solved question of previous Chapters: –

Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution

Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution

 

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

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Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

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