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Accountancy · 2025 · 3 marks
CBSE 2025 · Region 1 · Set 1 · Q20
The capital of the firm of Rajat and Karan is ₹ 15,00,000 and the market rate of interest is 12%. Annual salary of Rajat and Karan is ₹ 20,000 and ₹…
The capital of the firm of Rajat and Karan is ₹ $\displaystyle 15,00,000$ and the market rate of interest is $\displaystyle 12$%. Annual salary of Rajat and Karan is ₹ $\displaystyle 20,000$ and ₹ $\displaystyle 30,000$ respectively. The profits for the last three years were ₹ $\displaystyle 2,40,000$, ₹ $\displaystyle 2,80,000$ and ₹ $\displaystyle 3,20$,000. Goodwill of the firm is to be valued on the basis of two years purchase of last three years' average super profits. Calculate the goodwill of the firm.
Marking-scheme solution
Goodwill= Super profit x Number of years’ purchase
Normal profit= Normal Rate of return/$\displaystyle 100$ x Capital Employed
= $\displaystyle 12$/$\displaystyle 100$ x₹$\displaystyle 15,00,000$
= ₹$\displaystyle 1,80,000$
Average profit= (₹$\displaystyle 2,40,000$+ ₹$\displaystyle 2,80,000$+ ₹$\displaystyle 3,20,000$)/$\displaystyle 3$
= ₹$\displaystyle 2,80,000$
Average profit less partners’ salary= ₹$\displaystyle 2,80,000$- ₹$\displaystyle 50,000$
= ₹$\displaystyle 2,30,000$
Average Super profit/ Super profit = Average profit - Normal profit
=₹$\displaystyle 2,30,000$- ₹$\displaystyle 1,80,000$
=₹$\displaystyle 50,000$
Goodwill= Super profit x Number of years’ purchase
= ₹$\displaystyle 50,000$ x $\displaystyle 2$
= ₹$\displaystyle 1,00,000$
Alternate answer:
Interest on capital employed = $\displaystyle 12$/$\displaystyle 100$ x₹$\displaystyle 15,00,000$= ₹$\displaystyle 1,80,000$
Partners salary= ₹$\displaystyle 20,000$ +₹$\displaystyle 30,000$ = ₹$\displaystyle 50,000$
Normal Profit= Interest on capital employed + Partners’ salary= ₹$\displaystyle 1,80,000$ +₹$\displaystyle 50,000$= ₹$\displaystyle 2,30,000$
Average profit= (₹$\displaystyle 2,40,000$+ ₹$\displaystyle 2,80,000$+ ₹$\displaystyle 3,20,000$)/$\displaystyle 3$
= ₹$\displaystyle 2,80,000$
Average Super profit= Average profit - Normal profit
=₹$\displaystyle 2,80,000$- ₹$\displaystyle 2,30,000$
=₹$\displaystyle 50,000$
Goodwill= Super profit x Number of years purchase
= ₹$\displaystyle 50,000$ x $\displaystyle 2$
= ₹$\displaystyle 1,00,000$
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CBSE Class 12 Accountancy past-paper question from the 2025 board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.