17 :- On 1st April, 2025, an existing firm had assets of Rs 75,000 including cash of Rs 5,000. Its creditor amounted to Rs 5,000 on that date. The firm had a reserve of Rs 10,000 while partner’s capital accounts showed a balance of Rs 60,000. If normal rate of return is 20% and goodwill of the firm is valued at Rs 24,000 at four years purchase of super profit, find average profit per year of the existing firm.
18 :- On 1st April, 2023, a partnership firm had assets of Rs 2,00,000 including cash of Rs 6,000 and bank balance of Rs 14,000. The partners’ capital accounts showed a balance of Rs 1,90,000 and reserves constituted the rest. If the normal rate of return is 10% and the goodwill of the firm is valued at Rs 60,000 at 4 years purchase of super profits, find the average profits of the firm.
19 :- Average profit of the firm during the last few years is Rs 2,00,000 and the normal rate of return in a similar business is 10%. If the goodwill of the firm is Rs 2,50,000 at 4 years’ purchase of super profit, find the capital employed by the firm.
20 :- A business earned an average profit of Rs 1,80,000 during the last few years. Average capital employed by the firm is Rs 12,50,000. If goodwill of the firm is valued at Rs 1,60,000 at 2 years purchase of super profit, find normal rate of return.
21 :- A business has earned average profit of Rs 1,20,000 during the last four years and the normal rate of return in similar business is 15%. If goodwill of the firm is valued at Rs 1,35,000 at 3 years purchased of average super profit, find the capital employed of the firm.
Question 1 to 3 (Average Profit Method)
Question 4 to 7 (Average Profit Method when Past Adjustments are made)
Question 8 to 9 (Weighted Average Profit Method)
Question 10 to 16 (Super Profit Method)
Question 17 to 21 (Calculation of Average Profit, Normal Rate of Return and Capital Employed)
Question 22 to 24 (Super Profit Method when Past Adjustments are Made)
Question 25 to 28 (Capitalisation Method)
Question 29 to 32 (Capitalisation Method)
Question 33 to 38 (Capitalisation of Super profit)