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

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

 

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

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