Ultimate Book of Accountancy Class 12 Part A Solutions – Goodwill

Ultimate Book of Accountancy Class 12 Part A Solutions – Goodwill

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Practical Problems

Solution 1:
Average Profit = 8,000 + 10,000 + 14,000 + 12,000 = 44,000/4 = 11,000
Goodwill = 11,000 × 2 = 22,000

Solution 2:
Average Profit = 6,000 – 4,000 – 2,000 + 8,000 + 12,000 = 20,000/5 = 4,000
Goodwill = 4,000 × 2.5 = 10,000

Solution 3:
Average Profit = 20,000 + 20,000 + 40,000 + 20,000 = 1,00,000/4 = 25,000
Goodwill = 25,000 × 1.5 = 37,500

Solution 4:
Average Profit = 20,000 + 40,000 + 40,000 + 20,000 + 30,000 = 1,50,000/5 = 30,000
Goodwill = 30,000 × 2 = 60,000

Solution 5:
Average Profit = 50,000 + 60,000 + 70,000 = 1,80,000/3 = 60,000 – 36,000 = 24,000
Goodwill = 24,000 × 2 = 48,000

Solution 6:
Average Profit = 45,000(60,000 – 15,000) + 1,50,000 (1,20,000 + 30,000) + 1,05,000 (1,14,000 – 9,000) = 3,00,000/3 = 1,00,000
Goodwill = 1,00,000 × 2 = 2,00,000

Solution 7:
Average Profit =

Average Profit = 1,62,000/4 = 40,500
Goodwill = 40,500 × 2 = 81,000

Solution 8:
Calculation of Goodwill :

Weighted Average Profit = 6,00,000/15 = 40,000
Goodwill = 40,000 × 2.5 = 1,00,000

Solution 9:
Calculation of Goodwill :

Weighted Average Profit = 2,49,000/15 = 16,600
Goodwill = 16,600 × 2 = 33,200

Solution 10:
Calculation of Goodwill :


Calculation of weighted average profits:

Weighted Average Profit = 1,09,640/10 = 10,964
Goodwill = 10,964 × 3 = 32,892

Solution 11:
Average Profit = 27,000 + 30,000 + 33,000 = 90,000/3 = 30,000
Normal Profit = Capital investment × 10/100 = 90,000 × 10/100 = 9,000
Super Profit = 30,000 – 9,000 = 21,000
Goodwill = 21,000 × 2 = 42,000

Solution 12:
Goodwill (given) = 48,000
Super Profit = 48,000/4 = 12,000
Normal Profit = 1,50,000 × 10/100 = 15,000
Super Profit = Average Profit – Normal Profit
12,000 = ? – 15,000
Average profit = 12,000 + 15,000 = 27,000

Solution 13:
Average Profit = 14,000 + 13,000 + 16,000 + 15,000 + 12,000 = 70,000/5 = 14,000
Normal Profit = 80,000 × 12/100 = 9,600
Super Profit = 14,000 – 9,600 = 4,400
Goodwill = 4,400 × 3 = 13,200

Solution 14:
Average Profit = 60,000 + 70,000 + 86,000 = 2,16,000/3 = 72,000
Remuneration = 72,000 – 12,000 = 60,000
Normal Profit = 4,00,000 × 10/100 = 40,000
Super Profit = 60,000 – 40,000 = 20,000
Goodwill = 20,000 × 2 = 40,000

Solution 15:
Average Profit = 12,200 + 15,000 – 2,000 + 21,000 = 46,200/4 = 11,550
Remuneration = 11,550 – 3,600 = 7,950
Normal Profit = 50,000 × 10/110 = 5,000
Super Profit = 7,950 – 5,000 = 2,950
Goodwill = 2,950 × 3 = 8,850

Solution 16:
Capitalised value of Average Profit = 20,000 × 100/10 = 2,00,000
Goodwill = 2,00,000 – 1,64,000 = 36,000

Solution 17:
Capialised value of Average Profit = 21,600 × 100/10 = 2,16,000
Net Assets = 3,00,000 – 90,000 – 1,20,000 = 1,71,000
Goodwill = 2,16,000 – 1,71,000 = 45,000

Solution 18:
Average Profit = 9,000
Normal Profit = 60,000 × 10/100 = 6,000
Super Profit = 9,000 – 6,000 = 3,000
Goodwill = 3,000 × 100/10 = 30,000

Solution 19:
Average Profit = 12,000
Normal Profit = 30,000 × 20/100 = 6,000
Super Profit = 12,000 – 6,000 = 6,000
Goodwill = 6,000 × 100/20 = 30,000

Solution 20:
Average Profit = 20,000 + 16,000 – 10,000 – 6,000 + 40,000 = 60,000/5 = 12,000
Remuneration = 12,000 – 4,000 = 8,000
Normal Profit = 50,000 × 10/100 = 5,000
Net Assets = 60,000 – 36,000 = 24,000
Case 1:
Goodwill by Average Profits = 8,000 × 2 = 16,000
Case 2:
Goodwill by Super Profit:
Super Profit = Average Profit – Normal Profit
8,000 – 5,000 = 3,000
Goodwill = 3,000 × 2.5 = 7,500
Case 3:
Capitalisation of Average Profit:
Capitalised value = 8,000 × 100/10 = 80,000
Goodwill = Capitalised value – Net Assets
56,000 = 80,000 – 24,000
Case 4:
Capitalisation of Super Profit:
Goodwill = Super Profit × 100/Rate = 3,000 × 100/10 = 30,000

Solution 21:
Average Profit = 72,000
Normal Profit = 1,87,500 + 1,50,000 + 1,12,500 = 4,50,000 × 10/100 = 45,000
Super Profit = 72,000 – 45,000 = 27,000
Goodwill = 27,000 × 100/10 = 2,70,000

Solution 22:
Average profit = 1,20,000 + 1,44,000 + 1,68,000 = 4,32,000/3 = 1,44,000
salary = 1,44,000 – 48,000 = 96,000
Normal Profit = 4,00,000 × 15/100 = 60,000
Super Profit = 96,000 – 60,000 = 36,000
Goodwill = 36,000 × 2 = 72,000
Note: Salary is 48,000 (24,000 each)

Brilliant Problems

Solution 1:
Case 1:
Average Profit = 1,47,600 + 1,48,100 + 1,52,500 = 4,48,200/3 = 1,49,400
Remuneration = 1,49,400 – 12,000 = 1,37,400
Goodwill = 1,37,400 × 3 = 4,12,200
Case 2:
Average profit = 1,37,400
Normal Profit = 7,00,000 × 18/100 = 1,26,000
Super Profit = Average Profit – Normal Profit
11,400 = 1,37,400 – 1,26,000
Goodwill = 11,400 × 3 = 34,200
Case 3:
Capitalisation of Average Profit = 1,37,400 × 100/18 = 7,63,333
Net Assets = 7,54,762 – 31,329 = 7,23,433
Goodwill = 7,63,333 – 7,23,433 = 39,900
Case 4:
Super Profit x 100/Rate = 11,400 × 100/18 = 63,333

Solution 2:
Average Profit = 32,280 + 36,870 + 43,350 = 1,12,500/3 = 37,500 – 1,800 = 35,700
Capital Employed = Total Assets (ignore non-trade investment) – outsiders liabilities = Creditors
2,42,040 – 30,000 – 38,040 = 1,74,000
Normal Profit = 1,74,000 × 10/100 = 17,400
Super Profit = 35,700 – 17,400 = 18,300
Goodwill = 18,300 × 2 = 36,600

Weighted Method:

Weighted Average Profit = 2,25,270/6 = 37,545
Normal Profit = 17,400
Super Profit = 37,545 – 17,400 = 20,145
Goodwill = 20,145 × 2 = 40,290

Solution 3:
Goodwill (given) = 24,000
Super Profit = 24,000/4 = 6,000
Normal Profit = 75,000 × 20/100 = 15,000
Super Profit = Average Profit – Normal Profit
6,000 = ? – 15,000
Average Profit = 6,000 + 15,000 = 21,000

Solution 4:
Goodwill = 18,000 (given)
Super Profit = 18,000/4 = 4,500
Capital Employed = 15,00,000 – 12,00,000 = 3,00,000
Normal Profit = 3,00,000 × 10/100 = 30,000
Average Profit = 30,000 + 4,500 = 34,500

Solution 5:
Average Profit = 45,000 + 60,000 + 63,000 (75,000 – 12,000) = 1,68,000/3 = 56,000
Normal Profit = 5,00,000 × 10/100 = 50,000
Super Profit = 56,000 – 50,000 = 6,000
Goodwill = 6,000 × 100/10 = 60,000

Solution 6:
Normal Profit = 10,00,000 × 20/100 = 2,00,000
Average Profit = 3,00,000 (given)
Super Profit = 3,00,000 – 2,00,000 = 1,00,000
Goodwill = 1,00,000 × 100/20 = 5,00,000
Goodwill = 1,00,000 × 2 = 2,00,000

Solution 7:
Capital employed = 20,00,000 – 3,60,000 = 16,40,000
Normal Profit = 16,40,000 × 10/100 = 1,64,000
Average Profit = 2,00,000
Super Profit = 2,00,000 – 1,64,000 = 36,000
Goodwill = 36,000 × 100/10 = 3,60,000
Goodwill = 36,000 × 3 = 1,08,000

Solution 8:
Average Profit = 1,56,800 + 1,40,000 + 1,80,000 + 1,20,000 = 5,96,800/4 = 1,49,200 – Remuneration (4,800 × 4) = 1,30,000
Normal Profit = 9,20,000 × 13/100 = 1,19,600
Super Profit = 1,30,000 – 1,19,600 = 10,400
Net Assets = 10,40,000 – 1,60,000 = 8,80,000
Goodwill by capitalisation of Average Profit = 1,30,000 × 100/13 = 10,00,000
10,00,000 – Net Assets 8,80,000 = 1,20,000
Goodwill by capitalising Super Profit = 10,400 × 100/13 = 80,000

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