Question
16:
Amit and Kartik are partners sharing profits and
losses equally. They decided to admit Saurabh for annual share in the profits.
For this purpose, the goodwill of the firm was to be valued at four years
purchase of super profits.
The Balance Sheet of the firm on Saurabh’s admission
was as follows:
|
Liabilities |
|
₹ |
Assets |
₹ |
|
Capital
A/cs: |
|
|
Fixed
Assets (Tangible) |
75,000 |
|
Amit |
90,000 |
|
Furniture
|
15,000 |
|
Kartik |
50,000 |
1,40,000 |
Stock |
30,000 |
|
Creditors
|
|
5,000 |
Debtors |
20,000 |
|
General
Reserve |
|
20,000 |
Cash |
50,000 |
|
Bills
payable |
|
25,000 |
|
|
|
|
|
1,90,000 |
|
1,90,000 |
The normal rate of return is 12% p.a. Average profit
of the firm for the last four years was 30,000.
Calculate Saurabh's share of goodwill.
(CBSE Sample Question Paper 2025)
Answer:
Total capital empleed = Capital + Reseve
Total
capital empleed = 1,40,000 + 20,000 = 1,60,000
Normal
Profit = Capital employed × Rate of Return/100
Normal
Profit = 1,60,000× 12/100 = 19,200
Super
Profit = Average Profit - Normal Profit
Super
Profit = 30,000 - 19,200 = 10,800
Goodwill
=
10,800 × 4 = ₹ 43,200
Question 17:
On 1st April, 2025, 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 Partners' Capital Accounts showed a balance of ₹ 60,000. If Normal Rate of Return is 20% and goodwill of the firm is valued at ₹ 24,000 at four years' purchase of super profit, find average profit per year of the existing firm.
Answer:
Average profit = total profit of past given
years/number of years
Capital Employed = Total Assets - Creditors
= 75,000 5,000 = ₹ 70,000
Goodwill of the firm = ₹ 24,000
Number of years’ purchase = 4
Goodwill=
Super profit × no. of purchases years’
Or, 24,000 = Super Profit / 4
=24,000/ 4
=6,000
Average profit = Normal profit+Super profit
20,000=14,000+6,000
Question
18:
On 1st April, 2023, a partnership firm had assets of
₹ 2,00,000 including cash of ₹ 6,000 and bank balance of ₹ 14,000.
The partners' capital accounts showed a balance of ₹ 1,90,000 and
reserves constituted the rest. If the normal rate of return is 10% and the
goodwill of the firm is valued at ₹ 60,000 at 4 years purchase of super
profits, find the average profits of the firm. (CBSE 2024)
Answer:
Total capital employed = Capital + Reserve
Total capital empleed =
2,00,000×10= 20,000
Super Profit = 60,000 ÷ 4 = 15,000
Average Profit =
Normal Profit + Super Profit
Average Profit = 20,000 + 15,000 = 35,000
Question 19:
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.
Answer:
Goodwill= Super profit × no. of
purchases years’
2,50,000=(Average profit – Normal profit ) × 4 purchases
years’
Or 250,000/4-2,00,000=- Normal profit
Or Normal
profit =1,37,500
Normal rate
of return=10%
Capital
employed= Normal profit ×100/ normal rate of return
Capital
employed =1,37,500×100/10=13,75,000
Question
20:
A business earned an
average profit of Rs. 1,80,000 during the last few years. Average capital
employed by the firm is Rs. 12,50,000. If goodwill of the firm is valued at Rs.
1,60,000 at 2 years' purchase of super profit, find normal rate of return.
Answer:
Super profit= 1,60,000/2=80,000
Normal Profit = average profit- super profit
Normal Profit = 1,80,000- 80,000 =1,00,000
Normal Rate of Return=1,00,000×100/12,50,000=8%
Ts Grewal Solution 2025-2026
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Class 12 / Volume – I