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Question 5 Chapter 3 of Class 12 Part – 1 Usha Publication

Question 5 Chapter 3 of Class 12 Part – 1 Usha Publication

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Question 5 Chapter 3 of Class 12 Part – 1 Usha Publication

5. (Average Profit Method) Goodwill is to be valued at two years purchase of 3 years normal average profit of the firm. The profit for 2014-15, Rs.20,000 (including insurance claim received of Rs.40,000). The loss for 2015-16 Rs.8,000(including voluntary retirement compensation paid Rs.1,10,000). The profit for 2016-17 Rs.1,05,000 (including a profit of Rs.25,000 on the sale of a fixed asset. Calculate the value of goodwill.

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The solution of Question 5 Chapter 3 of Class 12 Part – 1 Usha Publication: –

Day - 53 | Questions of Goodwill Ch. 3 Partnership - II | Accounts class 12 | PSEB | Sarbjit Singh |

Average Profit = Total Profit for past given years
Number of years
= (-20,000) + 1,02,000 + 80,000
3
= 1,62,000
3
= 54,000
Number of years’ purchase = 2
Goodwill = Average Profit X Number of years’ purchase
Goodwill = 54,000 X 2
Goodwill = 1,08,000

Working Note : –

*1 Calculation of Profits of last three years

Adjusted Profit for the year 2013 = Total Profit −Abnormal Gain
= 20,000 -40,000
= -20,000
Adjusted Profit for the year 2014 = Total Profit +Abnormal Loss
= (-8,000) +1,10,000
= 1,02,000
Adjusted Profit for the year 2015 = Total Profit −Indirect Expenses
= 1,05,000 -25,000
= 80,000

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End of Solution

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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 11 Chapter 3 of Class 12 Part – 1 Usha Publication

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Question 23 Chapter 3 of Class 12 Part – 1 Usha Publication

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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)

Chapter No. 4 – Partnership Accounts – III (Reconstitution of Partnership)

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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

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