Question

Q6) MS Priya company has asests of
of Rs. 500000 where as liabilities are
partners capital Rs 350000 general
reserves Rs 60000 creditors
Rs90000 if normal rate of return is
10% and Goodwill of the form is
valued and Rs.90000 at 2 years
purchase of super profit find average
profit of the firm? ( 5 marks each)

Answer 1

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⭐ Question :- ⭐

Priya company has asests of Rs. 500000 where as liabilities arepartners capital Rs 350000 general

reserves Rs 60000 creditors

Rs90000 if normal rate of return is

10% and Goodwill of the form is

valued and Rs.90000 at 2 years

purchase of super profit find average

profit of the firm?

⭐ solution:-⭐

☑️first we need to find capital employed for the calculation of normal profit.

capital employed from asset side

=total assets - outside liabilities

= 5,00,000 -. 90,000

= 4,10,000

☑️capital employed from liability side

= inner liabilities

= general reserves + partners capital

= 3,50,000 + 60,000

=. 4,10,000

{ ♥️ normal profit= capital employed × normal rate of returns / 100}

☑️normal profit = 4,10,000×10/100

normal profit= 41,000

☑️given :- goodwill = 90,000

no. of years purchased = 2 years

now we can find super profit with the help of given items

☑️Goodwill = super profit × no. of years purchased

= 90,000 = super profit × 2

45,000 = super profit

now , with the help of super profit we can find average profit .

☑️super profit = average profit - normal profit

45,000 = average profit - 41,000

average profit = 86,000

☑️so , AVERAGE PROFIT =86,000

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