Question 1

Question 1 Chapter 3 - Unimax Class 12 Part 1 - 2021

Sarbjit Singh · Accepted Answer

Question 1 Chapter 3 - Unimax Class 12 Part 1
1. Calculate the value of goodwill as on 1.4.21 if it is to be valued at two years’ purchase of the average profit of last five years. The profits and losses are as follows :

Year
Profit/Loss (Rs.)

2016-17
40000 (Profit)

2017-18
60000 (Profit)

2018-19
30000 (Profit)

2019-20
20000 (Loss)

2020-21
10000 (Loss)

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

Year
Profits (loss)

2001-02
40000

2002-03
60000

2003-04

Question 2

Question 2 Chapter 3 - Unimax Class 12 Part 1 - 2021

Sarbjit Singh · Accepted Answer

Question 2 Chapter 3 - Unimax Class 12 Part 1
2. Calculate the firm’s Goodwill as on 1.1.21 on the basis of 2 years’ purchase of average normal profit of the last three years which are following :

Year

2018
Rs. 40000 (including abnormal gain Rs. 4000)

2019
Rs. 50000 (after charging an abnormal loss of Rs. 10000)

2020
Rs. 45000 (excluding Rs. 6000 as insurance premium of firm’s property-now to be insured.

The solution of Question 2 Chapter 3 - Unimax Class 12 Part 1:

Profit for

Question 3

Question 6 Chapter 3 - Unimax Class 12 Part 1 - 2021

Sarbjit Singh · Accepted Answer

Question 6 Chapter 3 - Unimax Class 12 Part 1
6. The profits of a firm for the last five years were as follows :

Year
2017
2018
2019
2020
2021

Profit (Rs.)
20000
24000
30000
25000
18000

Calculate the value of goodwill as on 1.1.22 on the basis of three years’ purchase of the weighted average profits of last 5 years. Weights 1, 2, 3, 4 and 5 respectively have been given to the profits for the year 2017, 2018, 2019, 2020 and 2021.
The solution of Question 6 Chapter 3 - Unimax Class 12 Par

Question 4

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

Sarbjit Singh · Accepted Answer

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. 4000Real Average Profits = Rs. 50

Question 5

Question 10 Chapter 3 - Unimax Class 12 Part 1 - 2021

Sarbjit Singh · Accepted Answer

Question 10 Chapter 3 - Unimax Class 12 Part 1
10. A Firm earned net profit during the last five years as follows : 2017 Rs. 7000; 2018 Rs. 6500; 2019 Rs. 8000; 2020 Rs. 7500 and 2021 Rs. 6000. The capital investment of the firm is Rs. 40000. A fair return on Capital in the market is 12%. Find out the value of goodwill of the business, if it is based on three year’s purchase of average super profits of past five years.
The solution of Question 10 Chapter 3 - Unimax Class 12 Part 1:
Total Profit

Question 6

Question 13 Chapter 3 - Unimax Class 12 Part 1 - 2021

Sarbjit Singh · Accepted Answer

Question 13 Chapter 3 - Unimax Class 12 Part 1
13. The assets of a firm are Rs. 55000 and the liabilities other than capital are Rs. 25000. The normal rate of Profit in this type of business is 10%. Whereas the firm earns a profit of Rs. 4500. Find the value of goodwill according to the capitalization method.
The solution of Question 13 Chapter 3 - Unimax Class 12 Part 1:
Capital Employed = Total Assets – Outside liabilities= Rs. 55000 – Rs. 25000= Rs. 30000Capitalised value of average profits

Question 7

Question 14 Chapter 3 - Unimax Class 12 Part 1 - 2021

Sarbjit Singh · Accepted Answer

Question 14 Chapter 3 - Unimax Class 12 Part 1
14. The average net Profits expected in future by firm are Rs. 30000 per year. The average Capital employed in business by firm is Rs. 200000. The normal rate of return on the capital employed in similar business is 10%. Calculate goodwill of the firm by 1. Super Profit method on the basis of two year’s purchase.2. Capitalization Method.
The solution of Question 14 Chapter 3 - Unimax Class 12 Part 1:
   Super Profit MethodAverage Expected Net Profi

Question 8

Question 15 Chapter 3 - Unimax Class 12 Part 1 - 2021

Sarbjit Singh · Accepted Answer

Question 15 Chapter 3 - Unimax Class 12 Part 1
15. On 1st April, 2021 an existing firm has assets of Rs. 80000 including cash of Rs. 5000. The Partner’s Capital accounts showed a balance of Rs. 60000 and reserves constituted the rest. If the normal rate of return is 20% and the goodwill of the firm is valued at Rs. 24000 at 4 years purchase of super profits, find the average profits of the firm.
The solution of Question 15 Chapter 3 - Unimax Class 12 Part 1:
Goodwill = Rs. 24000 (given)Or Goodw

Question 9

Question 16 Chapter 3 - Unimax Class 12 Part 1 - 2021

Sarbjit Singh · Accepted Answer

Question 16 Chapter 3 - Unimax Class 12 Part 1
16. Goodwill is to be valued at two years’ purchase of 3 years normal average Profits of the firms. The Profits for 2018 is Rs. 20000 (including insurance claim received of Rs. 35000). The loss of 2019 is Rs. 15000 (including voluntary retirement compensation paid Rs. 105000). The Profit for 2020 is Rs. 75000 (including a profit of Rs. 30000 on sale of fixed assets). Calculate the value of goodwill as on 1.1.2021.
The solution of Question 16 Chapte

Question 10

Question 17 Chapter 3 - Unimax Class 12 Part 1 - 2021

Sarbjit Singh · Accepted Answer

Question 17 Chapter 3 - Unimax Class 12 Part 1
17. Goodwill is to be valued at 3 years’ purchase of average profits of 3 years upto the date of valuation after deducting interest @ 6% on capital employed and a fair remuneration to each partner. The profits are assumed to be earned evenly throughout the year. Fair remuneration for the work done by each partner is Rs. 18000 per annum and total capital employed is Rs. 180000. The trading profits (before charging interest on Capital employed and re

Question 11

Question 18 Chapter 3 - Unimax Class 12 Part 1 - 2021

Sarbjit Singh · Accepted Answer

Question 18 Chapter 3 - Unimax Class 12 Part 1
18. The following particulars are available in respect of the business of a firm.

Capital Invested
Rs. 50000

2018
Rs. 50000 (Profit)

2019
Rs. 12200 (Profit)

2020
Rs. 15000 (Profit)

2021
Rs. 21000 (Profit)

(a) Market rate of return on investment 8%.(b) Rate of risk return on Capital invested in the business 2%.(c) Remuneration from alternative employment of the proprietor (if not engaged in business) Rs. 3600 per annum.Compute
The solu

Question 12

Question 28 Chapter 3 - Unimax Class 12 Part 1 - 2021

Sarbjit Singh · Accepted Answer

Question 28 Chapter 3 - Unimax Class 12 Part 1
28. Varun and Sahil are partners in a firm. Their capitals on 1st April, 2020 were Rs. 300000 and Rs. 200000 and their profit sharing ratio is 2 : 1. Profits earned for year 2020-21 is Rs. 78000. Their drawings were Rs. 30000 and Rs. 20000. Prepare a Profit and Loss Appropriation Account and Partner’s Capital Accounts after taking into consideration the following facts :(i) Interest on Capital is payable at 6% per annum.(ii) Salaries : Varun = Rs.

Question 13

Question 29 Chapter 3 - Unimax Class 12 Part 1 - 2021

Sarbjit Singh · Accepted Answer

Question 29 Chapter 3 - Unimax Class 12 Part 1
29.Amar and Akbar are two partners sharing profits and losses equally and their respective opening capitals are Rs. 60000 and Rs. 30000. Profits for the year are Rs. 25000 before charging interest on drawings. Interest at 6% per annum is to be charged on drawings which were as follows :Amar = Rs. 600 per month in the beginning of each month.Akbar = Rs. 600 per month at the end of each month.Assuming that Capitals are fluctuating, prepare Profit and

Question 14

Question 30 Chapter 3 - Unimax Class 12 Part 1 - 2021

Sarbjit Singh · Accepted Answer

Question 30 Chapter 3 - Unimax Class 12 Part 1
30. Y and Z are partners with opening capitals of Rs. 200000 and Rs. 150000 respectively and their profit sharing ratio is 3 : 2. Interest on Capital is agreed @ 10% per annum. Z is to be allowed an annual salary of Rs. 9600. The profits of the year 2021, before adjustment of interest on capital and before charging salary amounted to Rs. 75000. Y is entitled to a commission of 10% of the profits after deducting salary and interest on capital, but b

Question 15

Question 31 Chapter 3 - Unimax Class 12 Part 1 - 2021

Sarbjit Singh · Accepted Answer

Question 31 Chapter 3 - Unimax Class 12 Part 1
31. Kanu and Shruti are partners sharing profits in the ration of 3 : 2. Their opening Capitals are Rs. 75000 and Rs. 50000 respectively. Interest on Capital is agreed @ 8% per annum. Shruti is to be allowed an annual Salary of Rs. 6000. During 2021 the profits of firm prior to Calculation of interest on capital and before charging Shruti’s salary amounted to Rs. 22000. A provision of 5% of given profits is to be made in respect of manager’s commis

Question 16

Question 32 Chapter 3 - Unimax Class 12 Part 1 - 2021

Sarbjit Singh · Accepted Answer

Question 32 Chapter 3 - Unimax Class 12 Part 1
32. A and B are partners sharing profit in proportion of 1/10th and 3/10th with capitals of Rs. 15000 and Rs. 10000 respectively as on 1st Jan., 2021. 5% interest was agreed to be calculated on the capital of each partner and B is to be allowed an annual salary of Rs. 2400 which has not been withdrawn. During the year 2021, A withdrew Rs. 1200 and B Rs. 2000 in anticipation of profits. Profits for the year prior to calculation of interest on capita

Question 17

Question 33 Chapter 3 - Unimax Class 12 Part 1 - 2021

Sarbjit Singh · Accepted Answer

Question 33 Chapter 3 - Unimax Class 12 Part 1
33. Alisha, Aman and Meenu are three partners. On 1st April, 2020 their respective Capitals were Rs. 80000, Rs. 60000 and Rs. 40000. On the same date, their current account balance were Alish = Rs. 4000 (Cr.), Aman = Rs. 2000 (Dr.), Meenu = Rs. 2500 (Cr.).
Profits are to be divided equally upto Rs. 15000. Above that amount Alisha gets 50%, Aman gets 30% and Meenu gets 20%. Drawings of Alisha, Aman and Meenu for year ending 31st March, 2021 were Rs.

Question 18

Question 34 Chapter 3 - Unimax Class 12 Part 1 - 2021

Sarbjit Singh · Accepted Answer

Question 34 Chapter 3 - Unimax Class 12 Part 1
34. A and B are partners sharing profit in the ratio of 3 : 2 with Opening Capitals of Rs. 50000 and Rs. 30000 respectively. Interest on Capital is agreed @ 6% per annum. B is to be allowed an annual salary of Rs. 2500. During the year ended 31st March, 2021 the profits of year prior to calculation of interest on Capital but after charging B’s salary amounted to Rs. 12500. A provision of 5% of the profits after charging interest on capital salary i

Question 19

Question 35 Chapter 3 - Unimax Class 12 Part 1 - 2021

Sarbjit Singh · Accepted Answer

Question 35 Chapter 3 - Unimax Class 12 Part 1
35. Aman and Guneet are partners. As on 1st April, 2020, the Capital of the partnership was Rs. 30000 out of which Rs. 19000 stood to credit of Aman and Rs. 11000 to the credit of Guneet Profits and Losses are to be divided in 3 : 2. On 31st March, 2021 their total combined capital is Rs. 50000- During year ended 31st March, 2021 Guneet’s drawings were Rs. 7000.- Aman was provided annual salary of Rs. 6000 during year ended 31st March, 2021.Assumin

Question 20

Question 36 Chapter 3 - Unimax Class 12 Part 1 - 2021

Sarbjit Singh · Accepted Answer

Question 36 Chapter 3 - Unimax Class 12 Part 1
36. A, B and C are three partners sharing profits and losses in ratio 2 : 2: 1. Their respective capitals as on 1st Aril, 2020 were Rs. 200000, Rs. 100000 and Rs. 50000.A and B made temporary loans to the firm as follows :A – Rs. 40000 advanced on July 1st 2020 and repaid on 31st December, 2020.B – Rs. 80000 advanced on 1st November, 2020 and repaid on 31st January, 2021.Interest on capital @ 5% per annum is to be provided to partners. Profit for y

Unimax Class 12 Part 1 - 2021 Solutions Chapter No. 3 - Partnership Accounts – II (Goodwill) - Unimax

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