Question 9 Chapter 3 – Unimax Class 12 Part 1 – 2021

Question 9 Chapter 3 – Unimax Class 12 Part 1

9. It was estimated that firm will every year make a profit of 5% on its Capital of Rs. 80000. The real average profits for the last four years are Rs. 5000. According to the partnership deed goodwill is valued at two year’s purchase of the super profits. Find out goodwill.

The solution of Question 9 Chapter 3 – Unimax Class 12 Part 1:

Normal Profits = Capital employed x Normal rate of return
= Rs. 80000 x 5/100
= Rs. 4000
Real Average Profits = Rs. 5000 (given)
Super Profits = Average Profits – Normal Profits
= Rs. 5000 – RS. 4000
= Rs. 1000
Goodwill = Super Profits x Number of years of Purchase of Super Profit
= Rs. 1000 X 2 years
= Rs. 2000

What is Partnership – Meaning and Its 4 Types

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. 8 – Company Accounts –  Accounting for Share Capital
• Chapter No. 9 – Company Accounts – Issue of Debentures
• Chapter No. 10 – Redemption of Debentures

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

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