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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