Home
Class 12
ACCOUNTS
The profits of firm for the five years a...

The profits of firm for the five years are as follows:
`{:(Year,Profit(Rs.)),(2012-13,20000),(2013-14,24000),(2014-15,30000),(2015-16,25000),(2016-17,18000):}`
Calculate the value of goodwill on the basis of three years’ purchase of weighted average profits based on weights 1,2,3,4 and 5 respectively.

Text Solution

Verified by Experts


Weighted Average Profit = Rs. `(3,48,000)/(15) = Rs. 23,200`
= Rs. `23,200 xx 3 = Rs. 69,600`
Promotional Banner

Topper's Solved these Questions

  • RECONSTITUTION OF A PARTNERSHIP FIRMADMISSION OF A PARTNER

    NCERT|Exercise Test your Understanding-I|3 Videos

  • RECONSTITUTION OF A PARTNERSHIP FIRMADMISSION OF A PARTNER

    NCERT|Exercise Test your Understanding-II|5 Videos

  • ISSUE AND REDEMPTION OF DEBENTURES

    NCERT|Exercise Illustration|18 Videos

  • RECONSTITUTION OF A PARTNERSHIP FIRM-RETIREMENT/DEATH OF A PARTNER

    NCERT|Exercise Numerical Question|28 Videos

Similar Questions

Explore conceptually related problems

The profits ear ned by a firm during the last four years were as follows: {:("Year ended 31st March","Profits (Rs.)"),(2013,"80,000"),(2014,"1,00,000"),(2015,"1,10,000"),(2016,"1,50,000"):} Calculate the value of goodwill on the basis of three year's purchase of weighted average profits. Weights to be used are 1,2,3 and 4 respectively to the profits for 2013, 2014, 2015 and 2016.

Calculate value of goodwill on the basis of three years' purchase of average profit of the preceding five years which were as follows:

The profits of a firm for the last five years were as follows : {:("Year ended 31st March",,"Profits (Rs.)"),(2011,,"43,000"),(2012,,"50,000"),(2013,,"52,000"),(2014,,"65,000"),(2015,,"85,000"):} You are required to calculate the value of goodwill on the basis of two year's purchase of weighted average profits. The weights to be used are : 2011 - 1, 2012 - 2, 2013 - 3, 2014 - 4, 2015 - 5.

1. The goodwill of a firm is to be worked out at three years’ purchase of the average profits of the last five years which are as follows: {:(Year,Profits(Loss)(Rs)),(2012,10000),(2013,15000),(2014,4000),(2015,(5000)),(2016,6000):} 2. The capital employed of the firm is Rs. 1,00,000 and normal rate of return is 8%, the average profits for last 5 years are Rs. 12,000 and goodwill is to be worked out at 3 years’ purchase of super profits, 3. Rama Brothers earn an average profit of Rs. 30,000 with a capital of Rs. 2,00,000. The normal rate of return in the business is 10%. Using capitalisation of super profits method work out the value the goodwill of the firm.

The profit for the five years of a firm are as follows – year 2013 Rs. 4,00,000, year 2014 Rs. 3,98,000, year 2015 Rs. 4,50,000, year 2016 Rs. 4,45,000 and year 2017 Rs. 5,00,000. Calculate goodwill of the firm on the basis of 4 years purchase of 5 years average profits.

Profit of a firm for the last five years were: Calculate value of goodwill on the basis of three years' purchase of the weighted average profit after assigning weights 1, 2, 3, 4 and 5 respectively to the profits for years ended 31st March, 2015, 2016, 2017, 2018 and 2019.

Profits of a firm for the year ended 31st March for the last five years were: Calculate value of goodwill on the basis of three years' purchase Weighted Average Profit after assigning weights 1, 2, 3, 4 and 5 respectively to the profits for years ended 31st March, 2015, 2016, 2017, 2018 and 2019.

The books of Ram and Bharti showed that the capital employed on 31.12.2016 was Rs. 5,00,000 and the profits for the last 5 years: 2015 Rs. 40,000, 2014 Rs.50,000, 2013 Rs. 55,000, 2012 Rs. 70,000 and 2011 Rs. 85,000. Calculate the value of goodwill on the basis of 3 year purchase of the average super profits of the last 5 years assuming that the normal rate of return is 10%.

Profit for the five years ending on 31st March, are as follows: Year 2015 -Rs. 4,00,000, year 2016 - Rs. 3,98,000, Year 2017 - Rs. 4,50,000, Year 2018 - Rs. 4,45,000 and Year 2019 - Rs. 5,00,000. Calculate goodwill of the firm on the basis of 4 years' purchase of 5 years' average Profit.

(Super Profit Method). A firm earned net profits during the last three years as: {:("Years",I,II,III),("Profits(Rs.)","18,000","20,000","22,000"):} The capital investment of the firm is Rs. 60,000. Normal return on the capital is 10% . Calculate value of goodwill on the basis of three years' purchase of the average super profit for the last three years.

NCERT-RECONSTITUTION OF A PARTNERSHIP FIRMADMISSION OF A PARTNER -Numerical Questions
  1. The profits of firm for the five years are as follows: {:(Year,Profi...

    Text Solution

    |

  2. A and B were partners in a firm sharing profits and losses in the rati...

    Text Solution

    |

  3. A,B,C were partners in a firm sharing profits in 3:2:1 ratio. They adm...

    Text Solution

    |

  4. X and Y are partners sharing profits in 5:3 ratio admitted Z for 1/10 ...

    Text Solution

    |

  5. A,B and C are partners sharing profits in 2:2:1 ratio admitted D for 1...

    Text Solution

    |

  6. P and Q are partners sharing profits in 2:1 ratio. They admitted R int...

    Text Solution

    |

  7. A,B and C are partners sharing profits in 3:2:2 ratio. They admitted D...

    Text Solution

    |

  8. A and B were partners in a firm sharing profits in 3:2 ratio. They adm...

    Text Solution

    |

  9. A,B and C were partners in a firm sharing profits in 3:3:2 ratio. They...

    Text Solution

    |

  10. Radha and Rukmani are partners in a firm sharing profits in 3:2 ratio....

    Text Solution

    |

  11. Singh, Gupta and Khan are partners in a firm sharing profits in 3:2:3 ...

    Text Solution

    |

  12. Sandeep and Navdeep are partners in a firm sharing profits in 5:3 rati...

    Text Solution

    |

  13. Rao and Swami are partners in a firm sharing profits and losses in 3:2...

    Text Solution

    |

  14. Compute the value of goodwill on the basis of four years purchase of t...

    Text Solution

    |

  15. Capital employed in a business is Rs. 2,00,000. The normal rate of ret...

    Text Solution

    |

  16. The books of Ram and Bharti showed that the capital employed on 31.12....

    Text Solution

    |

  17. Rajan and Rajani are partners in a firm. Their capitals were Rajan Rs....

    Text Solution

    |

  18. A business has earned average profits of Rs. 1,00,000 during the last ...

    Text Solution

    |

  19. Verma and Sharma are partners in a firm sharing profits and losses in ...

    Text Solution

    |

  20. A and B are partners in a firm sharing profits and lossess in the rati...

    Text Solution

    |

  21. Arti and Bharti are partners in a firm sharing profits in 3:2 ratio. T...

    Text Solution

    |