Ask question Search Order By: ActiveCategoryClear Filter 0 Votes 1 Ans Average profit earned by a firm is ₹ 1,00,000 which includes undervaluation of stock of ₹ 40,000 on an average basis. The capital invested in the business is ₹ 6,30,000 and the normal rate of return is 5%. Calculate goodwill of the firm on the basis of 5 times the super profit. 561 viewsAnurag Pathak Changed status to publish 4 mins ago[ISC] Goodwill[ISC} TS Grewal SolutionsAccountancy Class 12th 0 Votes 1 Ans On 1st April, 2023, a firm had assets of ₹ 7,50,000 including cash of ₹ 50,000. Its creditors amounted to ₹ 50,000 on that date. The firm had a reserve fund of ₹ 1,00,000 while Partner’s Capital Accounts showed a balance of ₹ 6,00,000 1.03K viewsAnurag Pathak Changed status to publish 7 mins ago[ISC] Goodwill[ISC} TS Grewal SolutionsAccountancy Class 12th 0 Votes 1 Ans A business earned an average profit of ₹ 1,80,000 during the last few years. The average capital employed by the firm is ₹ 12,50,000. If goodwill of the firm is valued at ₹ 1,60,000 at 2 year’s purchase of Super Profit. Find Normal Rate of Return. 1.05K viewsAnurag Pathak Changed status to publish 11 mins ago[ISC] Goodwill[ISC} TS Grewal SolutionsAccountancy Class 12th 0 Votes 1 Ans A business has earned average profit of ₹ 2,50,000 during the last few years and the normal rate of return in similar business is 10%. If goodwill of the firm is valued at ₹ 3,00,000 at 3 year’s purchase of Super profit, find Capital Employed by the firm. 799 viewsAnurag Pathak Changed status to publish 13 mins ago[ISC] Goodwill[ISC} TS Grewal SolutionsAccountancy Class 12th 0 Votes 1 Ans Varuna and Karuna are partners for equal shares. They admit Lata into partnership for 1/4th share. It was agreed to value goodwill of the firm at 4 year’s purchase of super profit 1.08K viewsAnurag Pathak Changed status to publish 16 mins ago[ISC] Goodwill[ISC} TS Grewal SolutionsAccountancy Class 12th 0 Votes 1 Ans Ideal Marketing earned an average profit of ₹ 4,00,000 during the last five years. Normal rate of return on capital employed is 10%. Balance Sheet of the firm as at 31st March, 2023 was as follows: 1.02K viewsAnurag Pathak Changed status to publish 21 mins ago[ISC] Goodwill[ISC} TS Grewal SolutionsAccountancy Class 12th 0 Votes 1 Ans Capital of the firm of Anu and Benu is ₹ 5,00,000 and the market rate of interest is 15%. Annual salary to partners is ₹ 30,000 each. Profits for the last 3 years were ₹ 1,50,000; ₹ 1,80,000 and ₹ 2,10,000 1.18K viewsAnurag Pathak Changed status to publish 24 mins ago[ISC] Goodwill[ISC} TS Grewal SolutionsAccountancy Class 12th 0 Votes 1 Ans Average net profit expected in future by Zee & Co. is ₹ 36,000 per year. Capital employed in the business by the firm is ₹ 2,00,000. Normal rate of return on capital in this class of business is 10% 574 viewsAnurag Pathak Changed status to publish 26 mins ago[ISC] Goodwill[ISC} TS Grewal SolutionsAccountancy Class 12th 0 Votes 1 Ans A partnership firm earned net profits during the last three years ended 31st March, as follows: 2021 – ₹ 17,000; 2022 – ₹ 20,000; 2023 – ₹ 23,000. Capital investment in the firm throughout the above mentioned period was ₹ 80,000 596 viewsAnurag Pathak Changed status to publish 30 mins ago[ISC] Goodwill[ISC} TS Grewal SolutionsAccountancy Class 12th 0 Votes 1 Ans Rakesh and Ashok earned a profit of ₹ 5,000. They employed capital of ₹ 25,000 in the firm. It is expected that the normal rate of return is 15% of the capital. Calculate amount of goodwill if goodwill is valued at three year’s purchase of super profit. 705 viewsAnurag Pathak Changed status to publish 32 mins ago[ISC] Goodwill[ISC} TS Grewal SolutionsAccountancy Class 12th 0 Votes 1 Ans Apoorva and Muskaan had a firm in which they had invested ₹ 50,000. On an average, the profits were ₹ 16,000. The normal rate of return in the industry is 15%. Goodwill is to be valued at four years’ purchase of profits in excess of profits @ 15% on the money invested. Value of goodwill. 1.11K viewsAnurag Pathak Changed status to publish 33 mins ago[ISC] Goodwill[ISC} TS Grewal SolutionsAccountancy Class 12th 0 Votes 1 Ans Calculate the goodwill of a firm on the basis of three year’s purchase of the weighted average profit of the last four financial years. The appropriate weights to be used and profits are: 1.78K viewsAnurag Pathak Changed status to publish 36 mins ago[ISC] Goodwill[ISC} TS Grewal SolutionsAccountancy Class 12th 0 Votes 1 Ans Dinesh and Mahesh are partners sharing profits and losses in the ratio of 3 : 2. They admit Ramesh into partnership for 1/4th share in profits. Ramesh brings in his share of goodwill in cash 1.11K viewsAnurag Pathak Changed status to publish 40 mins ago[ISC] Goodwill[ISC} TS Grewal SolutionsAccountancy Class 12th 0 Votes 1 Ans Raman and Daman are partners sharing profits in the ratio of 60 : 40 and for the last four years they have been getting annual salaries of ₹ 50,000 and ₹ 40,000 respectively 420 viewsAnurag Pathak Changed status to publish 42 mins ago[ISC] Goodwill[ISC} TS Grewal SolutionsAccountancy Class 12th 0 Votes 1 Ans Amitabh and Bachan are partners sharing profits and losses in the ratio of 5 : 3. On 1st April, 2023, Chaman is admitted to the partnership for 1/4th share of profits 1.24K viewsAnurag Pathak Changed status to publish 45 mins ago[ISC] Goodwill[ISC} TS Grewal SolutionsAccountancy Class 12th 0 Votes 1 Ans Profits of a firm for the year ended 31st March for the last five years were: 421 viewsAnurag Pathak Changed status to publish 48 mins ago[ISC] Goodwill[ISC} TS Grewal SolutionsAccountancy Class 12th 0 Votes 1 Ans Sonu and Sumit are partners sharing profits and losses in the ratio 3 : 2. They admit Sahil as a partner for 1/5th share. For this purpose, goodwill of the firm is to be valued on the basis of 3 year’s purchase of last 4 year’s average profit 1.87K viewsAnurag Pathak Changed status to publish 6 hours ago[ISC] Goodwill[ISC} TS Grewal SolutionsAccountancy Class 12th 0 Votes 1 Ans Parul and Rahul are partners in a firm. They admit Param into partnership for equal share. It was agreed that goodwill will be valued at three year’s purchase of average profit of last five years. profits for the last five years were: 1.69K viewsAnurag Pathak Changed status to publish 6 hours ago[ISC] Goodwill[ISC} TS Grewal SolutionsAccountancy Class 12th 0 Votes 1 Ans Sumit purchased Amit’s business on 1st April, 2023. Goodwill was decided to be valued at two year’s purchase of average normal profit of last four years. The profits for the past four years were: 1.89K viewsAnurag Pathak Changed status to publish 6 hours ago[ISC] Goodwill[ISC} TS Grewal SolutionsAccountancy Class 12th 0 Votes 1 Ans Naman and Amar are partners sharing profits in the ratio of 3 : 2. They decided to admit Raman as a partner from 1st April, 2023 on the following terms: 1.10K viewsAnurag Pathak Changed status to publish 6 hours ago[ISC] Goodwill[ISC} TS Grewal SolutionsAccountancy Class 12th 1 2 … 171 172 Question and answer is powered by anspress.net