10 :- The Capital of the firm of Anuj and Benu is Rs 10,00,000 and the market rate of interest is 15%. The annual salary of the partners is Rs 60,000 each. The profit for the last three years were Rs 3,00,000; Rs 3,60,000 and Rs 4,20,000. The goodwill of the firm is to be valued on the basis of two years’ purchase of the last three years’ average super profit. Calculate the goodwill of the firm.
11 :- Atul and Bipul had a firm in which they had invested Rs 50,000. On average, the profits were Rs 16,000. The normal rate of return in the industry is 15%. Goodwill is to be valued at four years’ purchase of profits in excess of profits @ 15% on the money invested. Calculate the value of goodwill.
12 :- Sakshi and Megha were partners sharing profits and losses in the ratio of 3:1. Capital employed as on 31st March, 2024 was Rs 14,00,000. Profit earned on an average is Rs 1,80,000. Calculate goodwill of the firm on the basis of 5 years purchase of Super profits, if the normal rate of return is 10%.
13 :- A and B were partners in a firm sharing profits equally. Their capitals were: A – Rs 1,20,000 and B – Rs 80,000. The annual rate of interest is 20%. Profits of the firm for the last three years were Rs 34,000; Rs 38,000 and Rs 30,000. They admitted C as a new partner. On C’s admission the goodwill of the firm was valued at 2 years’ purchase of the super profits.
Calculate the value of goodwill of the firm on C’s admission.
14 :- Average net profit expected in the future by XYZ firm is Rs 36,000 per year. The Average capital employed in the business by the firm is Rs 2,00,000. The normal rate of return from capital invested in this class of business is 10%. The remuneration of the partners is estimated to be Rs 6,000 p.a. Calculate the value of goodwill on the basis of two years’ purchase of super profit.
15 :- A partnership firm earned net profits during the last three years ended 31st March, as follows:
2023 – Rs 17,000; 2024 –Rs 20,000; 2025 – Rs 23,000
Capital investment in the firm throughout the above mentioned period has been Rs 80,000. Having regard to the risk involved, 15% is considered to be a fair return on the capital. Calculate value of goodwill on the basis of two years of purchase of average super profit earned during the above mentioned three years.
16 :- Amit and Kartik are partners sharing profits and losses equally. They decided to admit Saurabh for an equal share in the profits. For this purpose, the goodwill of the firm was to be valued at four years’ purchase of super profits.
The normal rate of return is 12% p.a. Average profit of the firm for the last four years was Rs 30,000. Calculate Saurabh’s share of goodwill.