Question 31:
A firm earns profit of ₹5,00,000.
Normal Rate of Return in a similar type of business is 10%. The value of total
assets (excluding goodwill) and total outsiders' liabilities as on the date of
goodwill are ₹55,00,000 and ₹14,00,000
respectively. Calculate value of goodwill according to Capitalisation
of Super Profit Method as well as Capitalisation of
Average Profit Method.
Answer;
Capitalised
value of average profit =500,000×100/10=50,00,000
Actual
capital employed= Assets – liabilities
=50,00,000-41,00,000
=9,00,000
Normal
profit = 41,00,000×10/100
Super
profit=5,00,000-4,10,000=90,000
Value of
goodwill under super profit method
=90,000×100/10=9,00,000
Question 32:
On 1st April, 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 of ₹60,000 at four
years' purchase of super profit, find the actual profits of the firm.(CBSE Sample paper, 2018)
Answer:
Total Assets of the firm=(Sundry Assets + Stock)=₹(1,00,000+20,000)=₹1,20,000
Current Liabilities of the firm=₹10,000
Capital Employed=(Total Assets - Current Liabilities)=₹(1,20,000 - 10,000)=₹1,10,000
Normal Profits=Capital Employed×Normal Rate of Return/100=₹1,10,000×8/100=₹8,800
Goodwill = Super Profits × No. of years of purchase
60,000=Super Profits × 4
Super Profits=₹60,000/4=₹15,000
Super Profits= Average Actual Profits - Normal Profits
15,000=Average Actual Profits - 8,800
Average Actual Profits=₹(15,000+8,800)=₹23,800
Question 33:
Average profit of a firm during the last few years
is ₹1,50,000. In similar business, the normal
rate of return is 10% of the capital employed. Calculate the value of goodwill
by capitalisation of super profit method if super
profits of the firm are ₹50,000. (CBSE 2020)
Answer:
Super Profit = 50,000
Goodwill = Super Profit ×100/Rate of Return
Goodwill = 50,000 ×100/10
Goodwill = 5,00,000
Question 34:
Raja Brothers earn an average profit of ₹30,000
with a capital of ₹2,00,000. The normal rate of
return in the business is 10%. Using capitalisation
of super profit method, workout the value of the goodwill of the firm.
(NCERT)
Answer:
Calculation of
goodwill under capitalization of super profit method
Capital value =super profit ×100/rate of return
Normal profit =capital employed × rate of return/100
Normal profit =200,000×10/100=20,000
Super profit =30,000-20,000
Super profit =10,000
Goodwill=
10,000×100/10=1,00,000
Question 35:
Rajan and Rajani are partners in a firm. Their capitals were Rajan₹ 3,00,000; Rajani₹ 2,00,000. During the year 31st March, 2025, the firm earned a profit of ₹ 1,50,000. Calculate the value of goodwill of the firm by capitalisation of super profit assuming that the normal rate of return is 20%.
Answer:
Goodwill=Super Profits×100/Nominal Rate of Return
Super Profits=Average Profit-Normal Profit
Average Profit=₹1,50,000
(Given)Normal Profit=Capital Employed×Normal Rate of Return
Normal Profit=(3,00,000+2,00,000)×20%=₹1,00,000
Super Profit=1,50,000-1,00,000=₹50,000
Goodwill=50,000×100/20=₹ 2,50,000
Ts Grewal Solution 2025-2026
Click below for more Questions
Class 12 / Volume – I