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The capital of the partners anu and benu is Rs. 1,00,000 and the market rate of interest is 15%. annual salary to partners is Rs. 6,000 each. the profit for the last three years were Rs. 30,000, 36,000 and 42,000. goodwill is to be valued at 2 years purchase of the last 3 years average super profits. calculate the goodwill of the firm.?
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The capital of the partners anu and benu is Rs. 1,00,000 and the marke...
Calculation of Goodwill of the Firm


Given Data:


  • Capital of Partners: Rs.1,00,000

  • Market Rate of Interest: 15%

  • Salary to Partners: Rs.6,000 each

  • Profit for Last 3 Years: Rs.30,000, Rs.36,000, and Rs.42,000



Calculation of Average Profits:

First, we need to calculate the average profit of the last three years:


  • Average Profit = (Rs.30,000 + Rs.36,000 + Rs.42,000) / 3

  • Average Profit = Rs.36,000



Calculation of Super Profit:

Next, we need to calculate the super profit of the firm:


  • Normal Profit = Capital x Market Rate of Interest

  • Normal Profit = Rs.1,00,000 x 15%

  • Normal Profit = Rs.15,000

  • Super Profit = Average Profit - Normal Profit

  • Super Profit = Rs.36,000 - Rs.15,000

  • Super Profit = Rs.21,000



Calculation of Goodwill:

Finally, we can calculate the goodwill of the firm using the super profit and the two-year purchase method:


  • Goodwill = 2 x Super Profit

  • Goodwill = 2 x Rs.21,000

  • Goodwill = Rs.42,000



Conclusion:

The goodwill of the firm is Rs.42,000. Goodwill represents the value of the firm's reputation, customer base, and other intangible assets that contribute to its profitability. By using the two-year purchase method, we can estimate the value of the firm's goodwill based on its historical super profits. This information can be useful for investors, creditors, and other stakeholders who want to understand the financial health and potential of the firm.
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The capital of the partners anu and benu is Rs. 1,00,000 and the marke...
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The capital of the partners anu and benu is Rs. 1,00,000 and the market rate of interest is 15%. annual salary to partners is Rs. 6,000 each. the profit for the last three years were Rs. 30,000, 36,000 and 42,000. goodwill is to be valued at 2 years purchase of the last 3 years average super profits. calculate the goodwill of the firm.?
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The capital of the partners anu and benu is Rs. 1,00,000 and the market rate of interest is 15%. annual salary to partners is Rs. 6,000 each. the profit for the last three years were Rs. 30,000, 36,000 and 42,000. goodwill is to be valued at 2 years purchase of the last 3 years average super profits. calculate the goodwill of the firm.? for Class 12 2024 is part of Class 12 preparation. The Question and answers have been prepared according to the Class 12 exam syllabus. Information about The capital of the partners anu and benu is Rs. 1,00,000 and the market rate of interest is 15%. annual salary to partners is Rs. 6,000 each. the profit for the last three years were Rs. 30,000, 36,000 and 42,000. goodwill is to be valued at 2 years purchase of the last 3 years average super profits. calculate the goodwill of the firm.? covers all topics & solutions for Class 12 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The capital of the partners anu and benu is Rs. 1,00,000 and the market rate of interest is 15%. annual salary to partners is Rs. 6,000 each. the profit for the last three years were Rs. 30,000, 36,000 and 42,000. goodwill is to be valued at 2 years purchase of the last 3 years average super profits. calculate the goodwill of the firm.?.
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