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Answer

Puneet and Tarun are in the restaurant business having credit balances in their fixed capital accounts as ₹ 2,50,000 each. They have credit balances in their Current Accounts of ₹ 30,000 and ₹ 20,000 respectively. The firm does not have any liability.

Solution:-

Anurag Pathak
April 18, 2023

A and B were partners in a firm with capitals of ₹ 3,00,000 and ₹ 2,00,000 respectively, The normal rate of return was 20% and the capitalised value of average profits was ₹ 7,50,000. Calculate the goodwill of the firm by capitalisation of the average profit method.

Solution:-

Anurag Pathak
April 18, 2023

A firm earned an average profit of ₹ 3,00,000 during the last few years. The normal rate of return of the industry is 15%. The assets of the business were ₹ 17,00,000 and its liabilities were ₹ 2,00,000. Calculate the goodwill of the firm by Capitalisation of average profit.

Solution:-

Anurag Pathak
April 18, 2023

From the following information, Calculate the value of the goodwill of the firm by applying Capitalisation Method. Total Capital of the firm ₹ 16,00,000. Normal Rate of Return 10% Profit for the year ₹ 2,00,000

Solution:-

Anurag Pathak
April 18, 2023

Ayub and Amit are partners in a firm and they admit Jaspal into partnership w.e.f. 1st April 2023. They agreed to value goodwill at 3 years’ purchase of super profit method for which they decided to average profit of last 5 years. The profits for the last 5 years were:

Solution:-

Anurag Pathak
April 18, 2023

Average profit earned by a firm is ₹ 7,50,000 which includes overvaluation of stock of ₹ 30,000 on an average basis. The capital invested in the business is ₹ 42,00,000 and the normal rate of return is 15%. Calculate the goodwill of the firm on the basis of 3 times the super profit.

Solution:-

Anurag Pathak
April 18, 2023

The average profit earned by a firm is ₹ 1,00,000 which includes an undervaluation of stock of ₹ 40,000 on an average basis.

Solution:-

Anurag Pathak
April 18, 2023

The average Profit of a firm during the last few years is ₹ 2,00,000 and the normal rate of return in a similar business is 10%. If the goodwill of the firm is ₹ 2,50,000 at 4 years’ purchase of super profit, find the capital employed by the firm.

Solution:-

Anurag Pathak
April 17, 2023

On 1st April 2023, an existing firm had assets of ₹ 75,000 including cash of ₹ 5,000. Its creditors amounted to ₹ 5,000 on that date. The firm had a Reserve of ₹ 10,000 while Partner’s Capital Accounts showed a balance of ₹ 60,000.

Solution:-

Anurag Pathak
April 17, 2023

A partnership firm earned net profits during the last three years ended 31st March, as follows:

Solution:-

Anurag Pathak
April 17, 2023