TS Grewal i (2014) Solutions for Class 12 Commerce Accountancy Chapter 2 Goodwill: Nature And Valuation are provided here with simple step-by-step explanations. These solutions for Goodwill: Nature And Valuation are extremely popular among class 12 Commerce students for Accountancy Goodwill: Nature And Valuation Solutions come handy for quickly completing your homework and preparing for exams. All questions and answers from the TS Grewal i (2014) Book of class 12 Commerce Accountancy Chapter 2 are provided here for you for free. You will also love the ad-free experience on Meritnation’s TS Grewal i (2014) Solutions. All TS Grewal i (2014) Solutions for class 12 Commerce Accountancy are prepared by experts and are 100% accurate.

Page No 2.16:

Question 1:

Answer:

Number of years’ purchase = 3

Page No 2.16:

Question 2:

Number of years’ purchase = 3

Answer:

Number of years’ purchase = 3

Page No 2.16:

Question 3:

Number of years’ purchase = 3

Answer:

Goodwill = Normal Average Profit × Number of years' purchase

Year

Actual Profit

+

Abnormal

Loss

Non-recurring

Abnormal

Gain

Non-recurring

=

Normal Profit

2013-14

30,000

+

40,000

Nil

=

70,000

2012-13

(80,000)

+

1,10,000

Nil

=

30,000

2011-12

1,10,000

+

Nil

30,000

=

80,000

Normal Profit for 3 Years

1,80,000

 

 

Number of years’ purchase is 2

Goodwill = 60,000 × 2 = Rs 1,20,000

 

Page No 2.16:

Question 4:

Goodwill = Normal Average Profit × Number of years' purchase

Year

Actual Profit

+

Abnormal

Loss

Non-recurring

Abnormal

Gain

Non-recurring

=

Normal Profit

2013-14

30,000

+

40,000

Nil

=

70,000

2012-13

(80,000)

+

1,10,000

Nil

=

30,000

2011-12

1,10,000

+

Nil

30,000

=

80,000

Normal Profit for 3 Years

1,80,000

 

 

Number of years’ purchase is 2

Goodwill = 60,000 × 2 = Rs 1,20,000

 

Answer:

Year

Actual Profit

+

Abnormal

Loss

Non-recurring

Abnormal

Gain

Non-recurring

=

Normal Profit

2012

50,000

+

Nil

5,000

=

45,000

2013

(20,000)

+

30,000

Nil

=

10,000

2014

70,000

+

Nil

18,000+8,000

=

44,000

Normal Profit for 3 Years

       99,000

 

 

Number of years’ purchase = 2



Page No 2.17:

Question 5:

Year

Actual Profit

+

Abnormal

Loss

Non-recurring

Abnormal

Gain

Non-recurring

=

Normal Profit

2012

50,000

+

Nil

5,000

=

45,000

2013

(20,000)

+

30,000

Nil

=

10,000

2014

70,000

+

Nil

18,000+8,000

=

44,000

Normal Profit for 3 Years

       99,000

 

 

Number of years’ purchase = 2

Answer:

Calculation of Average Profit for Five Years

Calculation of Average Profit for Four Years

Average Profit of four years is taken to compute the value of goodwill of the firm. This is because Average Profit of four years is more than the Average Profit of five years.

Page No 2.17:

Question 6:

Calculation of Average Profit for Five Years

Calculation of Average Profit for Four Years

Average Profit of four years is taken to compute the value of goodwill of the firm. This is because Average Profit of four years is more than the Average Profit of five years.

Answer:

Year

Profit before Partners’ Remuneration

Partners’ Remuneration

=

Profit after Partners’ Remuneration

2011-12

2,00,000

90,000

=

1,10,000

2012-13

2,30,000

90,000

=

1,40,000

2013-14

2,50,000

90,000

=

1,60,000

 

Year

Profit

×

Weight

=

Product

2011-12

1,10,000

×

1

=

1,10,000

2012-13

1,40,000

×

2

=

2,80,000

2013-14

1,60,000

×

3

=

4,80,000

 

Total

 

6

 

8,70,000

 

 

 

 

 

 

Page No 2.17:

Question 7:

Year

Profit before Partners’ Remuneration

Partners’ Remuneration

=

Profit after Partners’ Remuneration

2011-12

2,00,000

90,000

=

1,10,000

2012-13

2,30,000

90,000

=

1,40,000

2013-14

2,50,000

90,000

=

1,60,000

 

Year

Profit

×

Weight

=

Product

2011-12

1,10,000

×

1

=

1,10,000

2012-13

1,40,000

×

2

=

2,80,000

2013-14

1,60,000

×

3

=

4,80,000

 

Total

 

6

 

8,70,000

 

 

 

 

 

 

Answer:

Year

Profit

×

Weight

=

Product

2010

20,000

×

1

=

20,000

2011

24,000

×

2

=

48,000

2012

30,000

×

3

=

90,000

2013

25,000

×

4

=

1,00,000

2014

18,000

×

5

=

90,000

Total

 

 

15

 

3,48,000

 

 

 

 

 

 

Page No 2.17:

Question 8:

Year

Profit

×

Weight

=

Product

2010

20,000

×

1

=

20,000

2011

24,000

×

2

=

48,000

2012

30,000

×

3

=

90,000

2013

25,000

×

4

=

1,00,000

2014

18,000

×

5

=

90,000

Total

 

 

15

 

3,48,000

 

 

 

 

 

 

Answer:

Number of years’ purchase = 4

Page No 2.17:

Question 9:

Number of years’ purchase = 4

Answer:

Number of years’ purchase = 3

Page No 2.17:

Question 10:

Number of years’ purchase = 3

Answer:

Number of years’ purchase = 2

Page No 2.17:

Question 11:

Number of years’ purchase = 2

Answer:


 

Number of years’ purchase = 2

Page No 2.17:

Question 12:


 

Number of years’ purchase = 2

Answer:

Year

Profit before Partners’ Remuneration

Partners’ Remuneration

=

Actual Profit after Remuneration

2011–12

1,70,000

1,00,000

=

70,000

2012–13

2,00,000

1,00,000

=

1,00,000

2013–14

2,30,000

1,00,000

=

1,30,000

Number of years’ purchase = 2



Page No 2.18:

Question 13:

Year

Profit before Partners’ Remuneration

Partners’ Remuneration

=

Actual Profit after Remuneration

2011–12

1,70,000

1,00,000

=

70,000

2012–13

2,00,000

1,00,000

=

1,00,000

2013–14

2,30,000

1,00,000

=

1,30,000

Number of years’ purchase = 2

Answer:

Number of years’ purchase = 3

Page No 2.18:

Question 14:

Number of years’ purchase = 3

Answer:


 

Year Profit before Partner’s Salary Partner’s Salary = Actual Profit after Salary
1 60,000 24,000 = 36,000
2 72,000 24,000 = 48,000
3 84,000 24,000 = 60,000


Page No 2.18:

Question 15:


 

Year Profit before Partner’s Salary Partner’s Salary = Actual Profit after Salary
1 60,000 24,000 = 36,000
2 72,000 24,000 = 48,000
3 84,000 24,000 = 60,000


Answer:

Number of years’ purchase = 4

Page No 2.18:

Question 16:

Number of years’ purchase = 4

Answer:

Capital Employed = Total Assets Creditors

= 75,000 5,000 = Rs 70,000

Goodwill of the firm = Rs 24,000

Number of years’ purchase = 4

Or, 24,000 = Super Profit × 4

Page No 2.18:

Question 17:

Capital Employed = Total Assets Creditors

= 75,000 5,000 = Rs 70,000

Goodwill of the firm = Rs 24,000

Number of years’ purchase = 4

Or, 24,000 = Super Profit × 4

Answer:

Total Capital = Rs 16,00,000

Page No 2.18:

Question 18:

Total Capital = Rs 16,00,000

Answer:

Page No 2.18:

Question 19:

Answer:

(i) Calculation of Goodwill by Capitalisation of Super Profit Method

Profit of the firm = Rs 5,00,000

(ii) Calculation of Goodwill by Capitalisation of Average Profit Method 

Page No 2.18:

Question 20:

(i) Calculation of Goodwill by Capitalisation of Super Profit Method

Profit of the firm = Rs 5,00,000

(ii) Calculation of Goodwill by Capitalisation of Average Profit Method 

Answer:

Page No 2.18:

Question 21:

Answer:

Average Profit – Rs 4,00,000
Normal Rate of Return – 10%

(i) Goodwill by Capitalisation of Super profit



Super Profit = Actual Profit – Normal Profit
= 4,00,000 – 3,28,000
= Rs 72,000

=Rs 7,20,000

(ii) Super Profit Method if the goodwill is valued at 3 years’ purchase of super profits


Therefore, Goodwill is valued at Rs 2,16,000


 



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