Question:
Abha & Sara capital: ₹3L, ₹2L.
Profits: ₹60k, ₹90k, ₹1.2L
(i) 4 years purchase of avg. profits
(ii) Super profit capitalisation @10%
Abha & Sara capital: ₹3L, ₹2L.
Profits: ₹60k, ₹90k, ₹1.2L
(i) 4 years purchase of avg. profits
(ii) Super profit capitalisation @10%
Profits: ₹60k, ₹90k, ₹1.2L
(i) 4 years purchase of avg. profits
(ii) Super profit capitalisation @10%
Show Hint
Super Profit = Avg Profit – Normal Profit
Updated On: Jan 14, 2026
Hide Solution
Verified By Collegedunia
Solution and Explanation
Avg Profit = ₹90,000
(i) Goodwill = 4 × ₹90k = ₹3,60,000
(ii) Capital employed = ₹5,00,000
NRR = 10% ⇒ Normal Profit = ₹50,000
Super Profit = ₹90k – ₹50k = ₹40,000
Goodwill = ₹40k × 100 / 10 = ₹4,00,000
(i) Goodwill = 4 × ₹90k = ₹3,60,000
(ii) Capital employed = ₹5,00,000
NRR = 10% ⇒ Normal Profit = ₹50,000
Super Profit = ₹90k – ₹50k = ₹40,000
Goodwill = ₹40k × 100 / 10 = ₹4,00,000
Was this answer helpful?
0
0
Top Questions on Goodwill
- Which of the following is not the main factor affecting the value of Goodwill?
- Chandan, Deepak and Elvish were partners in a firm sharing profits and losses in the ratio of 1 : 2 : 2. Their Balance Sheet as at 31st March, 2024 stood as follows:
Balance Sheet of Chandan, Deepak and Elvish as at 31st March, 2024
Chandan retired from the firm on 1st April, 2024 on the following terms:Liabilities Amount (₹) Assets Amount (₹) Capitals: Fixed Assets 27,00,000 Chandan 7,00,000 Stock 3,00,000 Deepak 5,00,000 Debtors 2,00,000 Elvish 3,00,000 Cash 1,00,000 General Reserve 4,50,000 Creditors 13,50,000 Total 33,00,000 Total 33,00,000
[(i)] Fixed assets were to be depreciated by 10%.
[(ii)] Debtors of ₹ 30,000 were to be written off as bad debts.
[(iii)] Goodwill of the firm was valued at ₹ 6,00,000 and the retiring partner’s share is adjusted through the capital accounts of the remaining partners.
[(iv)] Chandan was paid through cash brought in by Deepak and Elvish in such a way so as to make their capitals proportionate to their new profit sharing ratio. Prepare Revaluation Account and Partners’ Capital Accounts. - Neeru and Pooja were partners in a partnership firm sharing profits and losses in the ratio of 4 : 3. The firm earned average profits of \(₹ 5,00,000\) during the last few years. The normal rate of return in a similar business is 10%. The average super profits of the firm were \(₹ 4,00,000\). The amount of capital employed by the firm was:
- The capital of the firm of Seema and Avi is ₹ 12,00,000 and the market rate of interest is 10%. Salary of each partner is ₹ 10,000 per annum. The profits for the last four years were ₹ 3,00,000, ₹ 4,00,000, ₹ 5,00,000 and ₹ 4,00,000 respectively. Goodwill of the firm is to be valued on the basis of three years purchase of last four years average super profits. Calculate the goodwill of the firm.
- The capital of the firm of Sumit and Asha is ₹ 20,00,000 and the market rate of interest is 12%. Salary of each partner is ₹ 20,000 per annum.
The profits of the last three years were ₹ 3,00,000, ₹ 2,60,000 and ₹ 4,00,000 respectively.
Goodwill of the firm is to be valued on the basis of four years' purchase of last three years’ average super profits.
Calculate the goodwill of the firm.
View More Questions
Questions Asked in CBSE CLASS XII exam
If vector \( \mathbf{a} = 3 \hat{i} + 2 \hat{j} - \hat{k} \) \text{ and } \( \mathbf{b} = \hat{i} - \hat{j} + \hat{k} \), then which of the following is correct?
- Find the value of $x$, if \[ \begin{bmatrix} 1 & 3 & 2 \\ 2 & 5 & 1 \\ 15 & 3 & 2 \end{bmatrix} \begin{bmatrix} 1 \\ x \\ 2 \end{bmatrix} = \begin{bmatrix} 0 \\ 0 \\ 0 \end{bmatrix} \]
- Two point charges of \( -5\,\mu C \) and \( 2\,\mu C \) are located in free space at \( (-4\,\text{cm}, 0) \) and \( (6\,\text{cm}, 0) \) respectively.
(a) Calculate the amount of work done to separate the two charges at infinite distance.
(b) If this system of charges was initially kept in an electric field \[ \vec{E} = \frac{A}{r^2}, \text{ where } A = 8 \times 10^4\, \text{N}\,\text{C}^{-1}\,\text{m}^2, \] calculate the electrostatic potential energy of the system.- CBSE CLASS XII - 2025
- Electrostatics
- 4,000 shares of ₹ 10 each were forfeited for non-payment of second and final call money of ₹ 2 per share. The minimum amount that the company must collect at the time of reissue of these shares will be :
- CBSE CLASS XII - 2025
- Accounting for Share Capital
- If $y = a \cos(\log x) + b \sin(\log x)$, then $x^2y'' + xy'1$ is:
- CBSE CLASS XII - 2025
- Continuity and differentiability
View More Questions