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Accountancy · 2023 · 3 marks
CBSE 2023 · Region 1 · Set 1 · Q20
On 1st April, 2022, the capital of the firm of Ashu and Madhav is ₹ 1,50,000. The normal rate of return on capital employed is 10%. Average profits…
On 1st April, $\displaystyle 2022$, the capital of the firm of Ashu and Madhav is ₹ $\displaystyle 1,50$,000. The normal rate of return on capital employed is $\displaystyle 10$%. Average profits of the firm are ₹ $\displaystyle 23$,500. Calculate goodwill of the firm based on three years purchase of super profits.
Rakshit and Malik are partners in a firm sharing profits and losses in the ratio of $\displaystyle 4$ : 1. On 1st April, $\displaystyle 2021$, their capitals were ₹ $\displaystyle 1,20,000$ and ₹ $\displaystyle 80,000$ respectively. On 1st December, $\displaystyle 2021$, they decided that the total capital of the firm should be ₹ $\displaystyle 3,00,000$ to be contributed by them in the ratio of $\displaystyle 2$ : 1. According to the partnership deed, interest on capital is allowed to the partners @ $\displaystyle 6$% p.a. Calculate interest on capital to be allowed for the year ending 31st March, 2022.
Marking-scheme solution
(a)
Normal Profit = $\displaystyle 10$/$\displaystyle 100$ x $\displaystyle 150,000$ = ₹$\displaystyle 15,000$
Average Profit = ₹$\displaystyle 23,500$
Super Profit = Average Profits – Normal Profit
= $\displaystyle 23,500$ - $\displaystyle 15,000$
= ₹$\displaystyle 8,500$
Goodwill = Super Profits x Number of years’ purchase
= $\displaystyle 8500$ x $\displaystyle 3$
= ₹ $\displaystyle 25,500$
Q. (b) Rakshit and Malik………….
Ans (b)
Calculation of Interest on Capital
Rakshit (₹)
Interest on Capital from $\displaystyle 1$ April $\displaystyle 2021$ to $\displaystyle 30$ Nov. $\displaystyle 2021$
$\displaystyle 6$/$\displaystyle 100$ x $\displaystyle 8$/12x $\displaystyle 1,20,000$ = $\displaystyle 4,800$
Interest on Capital from $\displaystyle 1$ Dec. $\displaystyle 2021$ to $\displaystyle 31$ March $\displaystyle 2022$
$\displaystyle 6$/$\displaystyle 100$ x $\displaystyle 4$/12x $\displaystyle 2,00,000$ = $\displaystyle 4,000$
Interest on Capital $\displaystyle 8,800$
Malik (₹)
Interest on Capital from $\displaystyle 1$ April $\displaystyle 2021$ to $\displaystyle 30$ Nov. $\displaystyle 2021$
$\displaystyle 6$/$\displaystyle 100$ x $\displaystyle 8$/12x $\displaystyle 80,000$ = $\displaystyle 3,200$
Interest on Capital from $\displaystyle 1$ Dec. $\displaystyle 2021$ to $\displaystyle 31$ March $\displaystyle 2022$
$\displaystyle 6$/$\displaystyle 100$ x $\displaystyle 4$/12x $\displaystyle 1,00,000$ = $\displaystyle 2,000$
Interest on Capital $\displaystyle 5,200$
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CBSE Class 12 Accountancy past-paper question from the 2023 board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.