Question:medium
Aashree and Manvi were partners in a firm and their capitals were ₹ 6,00,000 and ₹ 4,00,000 respectively. Normal rate of return in a similar business was 15% and the goodwill of the firm was valued at ₹ 3,00,000. If goodwill was calculated at three years purchase of super profits, the average profits of the firm were :
Aashree and Manvi were partners in a firm and their capitals were ₹ 6,00,000 and ₹ 4,00,000 respectively. Normal rate of return in a similar business was 15% and the goodwill of the firm was valued at ₹ 3,00,000. If goodwill was calculated at three years purchase of super profits, the average profits of the firm were :
Show Hint
Goodwill (Super Profit Method):
- Normal Profit = Capital Employed × Normal Rate of Return
- Super Profit = Average Profit - Normal Profit
- Goodwill = Super Profit × Number of Years Purchase
Updated On: Mar 9, 2026
- ₹ 1,00,000
- ₹ 45,000
- ₹ 2,50,000
- ₹ 1,50,000
Show Solution
The Correct Option is D
Solution and Explanation
Was this answer helpful?
0
Top Questions on Partnership
- Arora and Gurmeet were partners in a firm sharing profits and losses in the ratio of 3 : 2. Starting from 1st October, 2024 Arora withdrew ₹ 30,000 at the beginning of each quarter for his personal use. Interest on drawings was to be charged @ 12% per annum. Interest on Arora's drawings for the year ended 31st March, 2025 was:
- CBSE Class XII - 2026
- Accountancy
- Partnership
- Samta, Mamta and Geeta were partners in a firm sharing profits and losses in the ratio of 11 : 5 : 4. On 31st March, 2025 Samta died. On Samta's death, the goodwill of the firm was valued at ₹ 1,80,000. The necessary journal entry for the treatment of goodwill on Samta's death will be :
- CBSE Class XII - 2026
- Accountancy
- Partnership
- Munna and Sonu were partners in a firm sharing profits and losses in the ratio of 4 : 1. Their fixed capitals were ₹ 40,00,000 and ₹ 30,00,000 respectively. During the year ended 31st March, 2025, Munna withdrew ₹ 50,000 for personal use. Interest on drawings was to be charged @ 6% p.a. The journal entry for charging interest on Munna’s drawings will be :
- CBSE Class XII - 2026
- Accountancy
- Partnership
- Naisha, Mansi and Aakash were partners in a firm sharing profits and losses in the ratio of 3 : 2 : 2. On 1st January, 2025, Aakash advanced a loan of ₹ 3,00,000 to the firm. In the absence of a partnership deed, the amount of interest on loan due to Aakash on 31st March, 2025 will be :
- CBSE Class XII - 2026
- Accountancy
- Partnership
- Want to practice more? Try solving extra ecology questions todayView All Questions
