Commerce School

Student Community

YOUTUBE CHANNELSubscribe

Telegram Channel

Commerce School

Student Community

Telegram Channel

YOUTUBE CHANNELSubscribe

Archives Answers

Answer

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

The average net profit expected in the future by XYZ firm is ₹ 36,000 per year. The average capital employed in the business by the firm is ₹ 2,00,000.

Solution:-

Anurag Pathak
April 17, 2023

A business earned an average profit of ₹ 8,00,000 during the last few years. The normal rate of profits in a similar type of business is 10%. The total value of assets and liabilities of the business were ₹ 22,00,000 and ₹ 5,60,000 respectively.

Solution:-

Anurag Pathak
April 17, 2023

The total capital of the firm of Sakshi, Mehak, and Megha is ₹ 1,00,000 and the market rate of interest is 15%. The net profits for the last 3 years were ₹ 36,000 and ₹ 42,000.

Solution:-

Anurag Pathak
April 17, 2023

Atul and Bipul had a firm in which they had invested ₹ 50,000. On 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. Calculate the value of goodwill.

Solution:-

Anurag Pathak
April 17, 2023