Question 8 Chapter 3 of Class 12 Part – 1 VK Publication

Question 8 Chapter 3 of Class 12 Part – 1

8. Calculate goodwill at three years purchase of the super profit. The firm was established with a Capital of Rs. 2,00,000. The normal rate of earning in such type of business is 15%. The firm earned Rs. 37,000 as profit during the year.

The solution of Question 8 Chapter 3 of Class 12 Part – 1: –

Normal Profit = Capital Employed x Normal Rate of Return
= 2,00,000 ×15/100 = Rs. 30,000
Super Profit = Average Profit – Normal Profit
= 37,000 – 30,000 = Rs. 7,000
Goodwill= Super Profit x Number of Years’Purchase
= 7,000 x 3 = Rs. 21,000

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

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

• Chapter No. 1 – Accounting Not for Profit Organisations
• Chapter No. 2 – Partnership Accounts – I (Introduction)
• Chapter No. 3 – Partnership Accounts – II (Goodwill: Nature and Valuation)
• Chapter No. 4 – Partnership Accounts – III (Reconstitution of Partnership)
• Chapter No. 5 – Partnership Accounts – IV (Admission of A Partner)
• Chapter No. 6 – Partnership Accounts – V (Retirement and Death of A Partner)
• Chapter No. 7 – Partnership Accounts – VI (Dissolution of Partnership Firm)
• Chapter No. 8 – Company Accounts (Share Capital)
• Chapter No. 9 – Company Accounts (Issue of Debentures)
• Chapter No. 10 – Company Accounts (Redemption of Debentures)

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

• Chapter No. 1 – Financial Statements of a Company
• Chapter No. 2 – Financial Statement Analysis
• Chapter No. 3 –  Tools of Financial Statement Analysis- Comparative and Common Size
• Chapter No. 4 – Ratio Analysis
• Chapter No. 5 – Cash Flow Statement

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