text: # Question 07 Chapter 3 of +2 Part-1 – USHA Publication 12 Class Part – 1
  
  Q-7 - CH-3 - Usha +2 Book 2018 - Solution
  
  Question 07 Chapter 3 of +2-Part-1
  
  7. (Profit & Loss on fixed asset are given) In a firm of partners X and Y, the following was the financial position:
  2014: Profits Rs.30,000 (including profit on sale of land Rs.40,000)
  2015: Loss Rs.25,000 (After crediting claim for loss of asset Rs.35,000)
  2016: Profit Rs.50,000 (Before paying manager’s commission Rs.10,000)
  2017: Profit Rs.40,000 (including loss on sale of plant Rs.10,000)
  Goodwill is to be valued two times of average normal profit of last four years. Find out goodwill.
  
  ## The solution of Question 07 Chapter 3 of +2 Part-1: –
  
   Average Profit = Total Profit for past given years Number of years = (-10,000) + (-60,000) + 40,000 + 50,000 4 = 20,000 4 = 5,000
  
   Number of years’ purchase = 2 Goodwill = Average Profit X Number of years’ purchase Goodwill = 5,000 X 2 Goodwill = 10,000
  
  Working Note : –
  
  *1 Calculation of Profits of last three years
  
   Adjusted Profit for 1st year = Total Profit −Interest on capital = 30,000 – 40,000 = (-10,000)
  
   Adjusted Profit for 2nd year = Total Profit – Claim for loss of asset = -(25,000) – 35,000 = (-60,000)
  
   Adjusted Profit for 3rd year = Total Profit − Interest on capital = 50,000 – 10,000 = 40,000
  
   Adjusted Profit for 3rd year = Total Profit − Interest on capital = 40,000 + 10,000 = 50,000
  
  Comment if you have any questions.
  
  Also, Check out the solved question of previous Chapters: –
explanation: The document contains a math question related to calculating the goodwill of a partnership firm based on the profits and losses over four years. The document also provides a detailed solution to the question, including the working notes for the calculations.
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distilabel_metadata.content: # Question 07 Chapter 3 of +2 Part-1 – USHA Publication 12 Class Part – 1
  
  Q-7 - CH-3 - Usha +2 Book 2018 - Solution
  
  Question 07 Chapter 3 of +2-Part-1
  
  7. (Profit & Loss on fixed asset are given) In a firm of partners X and Y, the following was the financial position:
  2014: Profits Rs.30,000 (including profit on sale of land Rs.40,000)
  2015: Loss Rs.25,000 (After crediting claim for loss of asset Rs.35,000)
  2016: Profit Rs.50,000 (Before paying manager’s commission Rs.10,000)
  2017: Profit Rs.40,000 (including loss on sale of plant Rs.10,000)
  Goodwill is to be valued two times of average normal profit of last four years. Find out goodwill.
  
  ## The solution of Question 07 Chapter 3 of +2 Part-1: –
  
   Average Profit = Total Profit for past given years Number of years = (-10,000) + (-60,000) + 40,000 + 50,000 4 = 20,000 4 = 5,000
  
   Number of years’ purchase = 2 Goodwill = Average Profit X Number of years’ purchase Goodwill = 5,000 X 2 Goodwill = 10,000
  
  Working Note : –
  
  *1 Calculation of Profits of last three years
  
   Adjusted Profit for 1st year = Total Profit −Interest on capital = 30,000 – 40,000 = (-10,000)
  
   Adjusted Profit for 2nd year = Total Profit – Claim for loss of asset = -(25,000) – 35,000 = (-60,000)
  
   Adjusted Profit for 3rd year = Total Profit − Interest on capital = 50,000 – 10,000 = 40,000
  
   Adjusted Profit for 3rd year = Total Profit − Interest on capital = 40,000 + 10,000 = 50,000
  
  Comment if you have any questions.
  
  Also, Check out the solved question of previous Chapters: –
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distilabel_metadata.raw_output_q_a_detector_0: The document contains a math question related to calculating the goodwill of a partnership firm based on the profits and losses over four years. The document also provides a detailed solution to the question, including the working notes for the calculations.
  
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