Aayush and Krish are partners sharing profits and losses equally. They decided to admit Vansh
for an equal 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 31.3.2023 before admission of Vansh was as follows:
Balance Sheet of Aayush and Krish as at 31st March, 2023
| Liabilities | Amount (Rs.) | Assets | ||
|---|---|---|---|---|
| Capitals: Aayush Krish General ReserveLoan Creditors |
90,000 50,000 |
1,40,000 20,000 25,000 5,000 |
Machinery Furniture Stock Debtors Cash |
|
| Total | 1,90,000 | Total | ||
The normal rate of return is 12% per annum. Average profit of the firm for the last four years was Rs. 30,000. Calculate Vansh’s share of Goodwill.
Marks-3, CBSE: 2023-24/Zone-4/Set-1/Q-19
Answer :
