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...

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...

Sunny and Rohan were partners in a firm sharing profits and losses in the ratio of 2: 1. Their books showed that the capital employed on 31st March, 2023 was Rs. 7,00,000. The average profits earned by the firm were Rs. 90,000. Calculate the value of goodwill on the basis...

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...

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...

Rishi and Suman were partners in a firm. Their capitals were: Rishi Rs. 1,20,000 and Suman Rs. 80,000. The normal rate of return in similar business is 12%. The profits of the last four years were: Year Rs. 2019 20 33,000 2020 21 22,000 2021 22 31,000 2022 23 34,000...

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,...

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...

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...

On 1st April, 2023, a partnership firm had assets of Rs. 2,00,000 including cash of Rs. 6,000 and bank balance of Rs. 14,000 accounts showed a balance of Rs. 1,90,000 and reserves constituted the rest. If the normal rate of return is 10% and the goodwill of the firm is...

Pearl and Ruby were partners in a firm with a combined capital of Rs. 2,50,000. The normal rate of return was 10%. The profits of the last four years were as follows: Rs. 2019 20 35,000 2020 21 25,000 2021 22 32,000 2022 23 33,000 The closing stock for the...

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...

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...

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...

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...

On 1st April, 2022, the capital of the firm of Ashu and Madhav is ₹1,50,000. The normal rate of return on capital employed is 10%. Average profits of the firm are ₹23,500. Calculate goodwill of the firm based on three years purchase of super profits. Marks-3, CBSE:2022-23/Zone-1/Set-1/Q-20* Answer : Back

A and B were partners in a firm sharing profits equally. Their capitals were A ₹1,20,000 and B ₹80,000. The annual rate of interest 20%. The profits of the firm for the last three years were ₹34,000: ₹38,000 and ₹30,000. They admitted C as a new partner. On C’’s admission...

Asha and Babita were partners in a firm. Their capitals were ₹ 15,00,000 and ₹ 10,00,000 respectively. The profits of the last four years were:   ₹ 2019 – 20 2,50,000 2020 – 21 (50,000) 2021 – 22 8,00,000 2022 – 23 5,00,000 The closing stock for the year 2022...