Question

Jai and Veeru were in a partnership sharing Profit & Loss in the ratio 5 : 3. Their Capitals were ₹ 10,00,000 and ₹ 8,00,000 respectively. The firm was also having reserves of ₹ 7,00,000. Normal rate of return was 10%. Firm made average profits of ₹ 2,30,000 for the year ended March 31, 2025 (after adjustment of loss of machinery of book value of ₹ 2,00,000 by fire against which insurance claim of ₹ 1,50,000 was admitted). Value of goodwill as per Capitalisation of super profits will be:

विकल्प

• ₹ 10,00,000

• ₹ 3,00,000

• ₹ 18,00,000

• Nil

Answer 1

₹ 3,00,000

Explanation:

Capital Employed = Partners’ Capitals + Reserves

= 10,00,000 + 8,00,000 + 7,00,000

= 25,00,000

Given profit after adjusting fire loss:

Loss of machinery = 2,00,000

Insurance claim = 1,50,000

Net loss = 50,000 (abnormal loss)

Since this loss should be added back to find normal profit:

Adjusted Average Profit = 2,30,000 + 50,000

= 2,80,000

Normal Profit = 25,00,000 × 10%

= 2,50,000

Super Profit = Adjusted Average Profit − Normal Profit

= 2,80,000 − 2,50,000

= 30,000

Goodwill as per Capitalisation of Super Profit,

Goodwill `= "Super Profit"/"Normal Rate" xx 100`

= `30000/10 xx100`

= 3,00,000