Advertisement

Question 11 Chapter 3 of Class 12 Part – 1 Usha Publication

Question 15 Chapter 3 of Class 12 Part – 1 Usha Publication

Advertisement

VDO+ Tag:

Question 11 Chapter 3 of Class 12 Part – 1 Usha Publication

11. (Super Profit Method) A firm earned net profit during the last five years as follows:
(i) Rs.7,000; (ii) Rs.6,500; (iii) Rs.8,000; (iv) Rs.7,500; (v) Rs.6,000. The capital investment of the firm is Rs.40,000. 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 years purchase of average super-profits of the past five years.

Advertisement

Video Tag:

The solution of Question 11 Chapter 3 of Class 12 Part – 1 Usha Publication: –

Day - 54 | Questions of Goodwill Ch. 3 Partnership - II | Accounts class 12 | PSEB | Sarbjit Singh |

Formula to calculate the Value of Goodwill with Super Profit:

Goodwill =

Super Profit X Number of years’ purchase

Numbers of years’ of Purchase is given So firstly we have to calculate super profit with the help of following formula:

Super Profit =

Actual Average Profit – Normal Profit

To calcuate super profit we have to calculate the Actual Average profit and Normal Profit as following:

Calculation of Average Profit: –

Average Profit = Total Profit for past given years
Number of years
= 7,000 + 6,500 + 8,000 + 7,500 + 6,000
5
= 35,000
5
Average Profit = 7,000

Calculation of Normal Profit: –

Normal Profit = Capital Employed X Normal Rate of Return
100
= 40,000 X 12
100
Normal Profit = 4,800

Calculation of Super Profit:

Super Profit = Actual Average Profit – Normal Profit
= 7,000 – 4,800
Super Profit = 2,200
Number of years’ purchase = 3 (Given)

Calculation of Value of Goodwill with Super Profit:

Goodwill = Super Profit X Number of years’ purchase
= 2,200 X 3
Goodwill = 6,600

Thanks, Please Like and share with your friends  

Comment if you have any questions.

Thanks, Please Like and share with your friends  

Comment if you have any questions.

Advertisement


End of Solution


Check Out the Solution of all questions of this chapter:

The solution to all questions of Chapter No. 3 – Partnership Accounts – II (Goodwill: Nature and Valuation) Class 12 Usha Publication – 2024 is shown as follows, click on the image of the question to get the solution.

Question 10 Chapter 3 of Class 12 Part – 1 Usha Publication

Advertisement

Question 22 Chapter 3 of Class 12 Part – 1 Usha Publication

Advertisement

Thanks for completing the chapter. If you understand the question or we have helped you with your homework, please share our website on your social media. We are delighted to help you out.

Thanks again.

Download a PDF of Chapter No. 3 – Partnership Accounts – II (Goodwill: Nature and Valuation):

If you want to download a PDF of this chapter then you can do it. Check out our PDF file on our Store page.

Chapter-Wise Solution of Usha Publication Accountancy – Part 1 Class 12 – Session 2024-25 as per the PSEB curriculum

Check out Solutions to all questions of the every chapter shown as under. The Solution of Accountancy – Part 1 Class 12 – Session 2024-25 is provided as per the new book published by Usha Publication.

Chapter No. 1 – Accounting Not-for-Profit Organisations (Deleted from the Syllabus)

Chapter No. 2 – Partnership Accounts – I (Introduction)

Chapter No. 3 – Partnership Accounts – II (Goodwill: Nature and Valuation)

Advertisement

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)

Also, Check out our Comprehensive Chapter-wise solution of Advanced Accountancy Part 1 Class 12 by Unimax Publication

Check out Part 2 of both books.

In Class 12th the accountancy has 2 books i.e. Part 1 and Part 2. The Books related to the Part 1 are shown above. but If you want to know more about Part 2, you can check it out from the following links. We have provided the links to both books i.e. Accountancy Part 2 by Usha Publication and Advanced Accountancy Part 2 by Unimax Publication.

1. Accountancy – Part 2 Class 12 – Session 2024-25 By Usha Publication

2. Advanced Accountancy Part 2 Class 12 by Unimax Publication

Leave a Reply

Your email address will not be published. Required fields are marked *

Advertisement