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Accountancy · 2024 · 3 marks
CBSE 2024 · Region 2 · Set 1 · Q20
On 1st April, 2023, a partnership firm had assets of ₹ 2,00,000 including cash of ₹ 6,000 and bank balance of ₹ 14,000. The partners' capital…
On 1st April, $\displaystyle 2023$, a partnership firm had assets of ₹ $\displaystyle 2,00,000$ including cash of ₹ $\displaystyle 6,000$ and bank balance of ₹ $\displaystyle 14,000$ . The partners' capital accounts showed a balance of ₹ $\displaystyle 1,90,000$ and reserves constituted the rest. If the normal rate of return is $\displaystyle 10$% and the goodwill of the firm is valued at ₹ $\displaystyle 60,000$ at $\displaystyle 4$ years purchase of super profits, find the average profits of the firm.
Marking-scheme solution
Goodwill = No. of years’ purchase X Super Profits
₹$\displaystyle 60,000$ = $\displaystyle 4$ X Super Profits
Super Profits = ₹$\displaystyle 15,000$
Capital Employed= Total Assets- Outside Liabilities
= ₹$\displaystyle 2,00,000$- Nil= ₹$\displaystyle 2,00,000$
Normal Profit =$\displaystyle 10$% of ₹$\displaystyle 2,00,000$ = ₹$\displaystyle 20,000$
Super Profit = Average Profit- Normal Profit
₹$\displaystyle 15,000$ = Average profit- ₹$\displaystyle 20,000$
Average Profit= ₹$\displaystyle 35,000$
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CBSE Class 12 Accountancy past-paper question from the 2024 board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.