Aayush and Aarushi are partners sharing profits and losses in the ratio of 3:2. They admitted Naveen into partnership for 1/4th share. Goodwill of the firm was to be valued at three years’ purchase of super profits. Average net profit of the firm was ₹20,000. Capital investment in the business was ₹50,000 and Normal Rate of Return … Read more
Calculate goodwill of a firm on the basis of three years purchases of the Weighted Average Profits of the last four years. The profits of the last four years were: Years (ending 31st March) 2020 2021 2022 2023 Amount (₹) 28,000 27,000 46,900 53,810 a) On 1st April, 2020 a major plant repair was undertaken … Read more
On 1st April, 2014, a firm had assets of Rs. 1,00,000 excluding stock of Rs. 20,000. Partners’ Capital Accounts showed a balance of Rs. 60,000. The current liabilities were Rs. 10,000 and the balance constituted the reserve. If the normal rate of return is 8%, the Goodwill of the firm is valued at Rs. 60,000 … Read more
A partnership firm earned net profits during the last 3 years as follows: Year Net Profit (Rs.) 2007-2008 1,90,000 2008-2009 2,20,000 2010-2011 2,50,000 The capital employed in the firm throughout the above-mentioned period has been Rs. 4,00,000/-. Having regard to the risk involved, 15% is considered to be a fair return on the capital. The … Read more
Average profits of a firm during the last few years are Rs. 80,000 and the normal rate of return in a similar business is 10%. If the goodwill of the firm is Rs. 1,00,000 at 4 years’ purchase of super profit, find the capital employed by the firm. Marks-3, CBSE:2018-19/Main/02/Q-7 Answer : Back
The total capital of the firm of Sakshi, Mehak and Megha is Rs. 1,00,000 and the market rate of interest is 15%. The net profits for the last 3 years were Rs. 30,000; Rs. 36,000 and Rs. 42,000. Goodwill is to be valued at 2 years purchase of the last 3 years’ super profits. Calculate … Read more
On April l, 2018, a firm had assets of ₹1,00,000, excluding stock of ₹20,000. The Current liabilities were ₹10,000 and the balance constituted Partners’ Capital Accounts. If the normal rate of return is 8%, the Goodwill of the firm is valued at ₹60,000 at four years purchase of super profit, find the actual profits of … Read more
The capital of the firm of Anuj and Benu is Rs. 10,00,000 and the market rate of interest is 15%. Annual salary to the partners is Rs. 60,000 each. The profit for the last three years were Rs. 3,00,000, Rs. 3,60,000 and Rs. 4,20,000. Goodwill of the firm is to be valued on the basis … Read more
Hari and Krishan were partners sharing profits and losses in the ratio of 2 : 1. They admitted Shyam as a partner for 1/5th share in the profits. For this purpose the Goodwill of the firm was to be valued on the basis of three years’ purchase of last five years average profits. The profits … Read more
The goodwill of a firm was to be valued at two years’ purchase of the average profits of the last three years. The profits were as under : 2014 – 15 : Rs. 20,000 (including an abnormal gain of Rs. 5,000) 2015 – 16 : Rs. 40,000 (after charging an abnormal loss of Rs. 10,000) … Read more