12th Standard Syllabus & Materials

12th Standard

TN 12th Computer Applications மின்னணு தரவு பரிமாற்றம் Sample Question Papers Study Material - QB365 Set A

NEW

12th Standard

TN 12th Computer Applications மின் - வணிக பாதுகாப்பு அமைப்புகள் Sample Question Papers Study Material - QB365 Set A

NEW

12th Standard

TN 12th Computer Applications மின்னணு செலுத்தல் முறைகள் Sample Question Papers Study Material - QB365 Set A

NEW

12th Standard

TN 12th Computer Applications மின் - வணிகம் Sample Question Papers Study Material - QB365 Set A

NEW

12th Standard

TN 12th Computer Applications திறந்த மூல கருத்துருக்கள் Sample Question Papers Study Material - QB365 Set A

NEW

12th Standard

TN 12th Computer Applications வலையமைப்பு வடமிடல் Sample Question Papers Study Material - QB365 Set A

12th Standard English Medium Accountancy Subject Goodwill In Partnership Accounts Creative 5 Mark Questions with Solution Part - II

Published on: 22/06/2021

QB365 provides detailed and simple solution for every
Creative Questions in class 12 Accountancy Subject. It will helps to get more idea about question pattern in
every Creative questions with solution.

Download Tamil Nadu 12th Standard Accountancy question papers, model tests, one-mark questions, important questions, and public exam papers in PDF format. Free study materials and answer keys for TN State Board students.

Questions + Answers key

Take MCQ Accountancy Test

QB365 Student Learing Managemnet System

Std: 12th Standard - Accountancy

chapter: - Creative Questions

Visit QB365-SLMS - https://www.qb365.in/slms/ Complete Questions and Answers

Questions:

Generic 5

5 x 5 = 25

From the following information, compute the value of goodwill as per annuity method:
(a) Capital employed: Rs.1,00,000
(b) Normal rate of return: 15%
(c) Profit of the years 2016, 2017 and 2018 were Rs.6,000, Rs.8,000 and Rs.20,000 respectively
(d) The present value of annuity of n for 3 years at 10% is 2.4868

Calculate the value of goodwill at 5 years purchase of super profit from the following information
(a) Capital employed: Rs. 60,000
(b) Normal rate of profit: 20%
(c) Net profit for 5 years
2014:Rs.1,00,000, 2015: Rs.50,000 2016: Rs.70,000; 2017: Rs.54,000 and 2018: Rs. 10,000
(d) Fair remuneration to the partners 3,600 per annum

From the following information, calculate the value of goodwill based on 3 years purchase of Super profit
(i) Capital employed: 1,00,000
(ii) Normal rate of return: 10%
(iii)Average profit of the business: 42,000

From the following information relating to Arul enterprises, calculate the value of goodwill on the basis of 2 years purchase of the average profits of 3 years.
(a) Profits for the years ending 31st December 2016, 2017, and 2018 were Rs. 23,000 Rs.22,000 and Rs. 25,000 respectively.
(b) A non-recurring income of Rs. 2,500 is included in the profits of the year 2016.
(c) The closing stock of the year 2017 was overvalued by Rs. 5,000.

The profit and losses of a firm for the last four years were as follows:
2015: Rs.20,000; 2016; Rs. 25,000;
2017; Rs.3,000(loss) 2018; Rs.18,000
You are required to calculate the amount of goodwill on the basis of 5 years purchase of average profit of the last 4 years.

Visit QB365-SLMS - https://www.qb365.in/slms/

Answers Key:

Generic 5

5 x 5 = 25

Average profit \(=\frac{Total\ profit}{Number\ of\ profits}\)
\(=\frac{16,000+18,000+20,000}{3}\)
\(=\frac{54,000}{4}=Rs. 18,000\)
Normal profit = Capital employed x Normal rate of return
= 1,00,000 x 15%
= Rs.15,000
Super profit = Average profit - Normal profit
= 18,000 - 15,000
= Rs.3,000
Goodwill = Super profit x Value of annuity
= 3,000 x 2.4868
= Rs.7,460.40

Average profit \(=\frac{Total\ Profit}{Number\ of \ years}\)
Average profit \(=\frac{1,00,000+50,000+70,000+54,000+10,000}{5}\)
Average profit \(=\frac{2,84,000}{5}=Rs. 56,000\)

	Rs
Average profit before fair remuneration to the partners	56,800
Less: Fair remuneration to the partners	3,600
Average profit	53,200

Normal profit = Capital employed x Normal rate of returns
=60,000x20%
=Rs.12,000
Super profit = Average profit - Normal profit
= 53,200 - 12,000
=Rs. 41,200
Goodwill = Super profit x Number of years of purchase
=41,200x5
Rs. 2,06,000

Normal profit = Capital employed x Normal rate of return
= 1,00,000 x 10% = Rs. 10,000
Super profit = Average profit - Normal profit
=42,000 - 10,000 = Rs. 32,000
Goodwill = Super profit x Number of years of purchase
=32,000 x 3
=Rs. 96,000

Calculation of adjusted profit
Particulars	2016 Rs.	2017 Rs.	2018 Rs.
Profit	23,000	22,000	25,000
Less: Non - recurring income	2,500	-	-
	20,500	22,000	25,000
Less: Less over valuation of closing stock	-	5,000	-
	20,500	17,000	25,000
Add: Over valuation of opening stock	-	-	5,000
Profit after adjustments	20,500	17,000	30,000

Average profit \(=\frac{Total\ profit}{Number\ of\ years}\)
\(=\frac{20,500+17,000+30,000}{3}\)
\(\frac{67,500}{3}\)
Average profit =Rs. 22,500
Goodwill =Average profitxNumber of years of purchase
=22,500x2=2=45,000
[Note: Over valuation of closing stock in 2017 will result in over valuation of opening stock in 2018]

Goodwill = Average profit x Number of years purchase
Average profit =\(\frac{Total\ profit}{Number\ of\ years}\)
\(=\frac{20,000+25,000-3,000+18,000}{4}\)
\(=\frac{60,000}{4}\)
Rs. 15000
Goodwill =Average profit x Number of years of purchase
=15,000x5=75,000
Goodwill=Rs.75,000