[CBSE] DK Goel Q. 4 Change in Profit Sharing Ratio Solutions Class 12 (2024-25)

Solution of Question 4 of Change in Profit sharing ratio DK Goel Class 12 CBSE (2024-25)

X purchased the business of Y from 1st April, 2023. For this purpose goodwill is to be valued at 100% of the average annual profits of the last four years. The profits shown on Y’s business for the last four years were:

Year Ended	Profits
31st March 2020	1,00,000	(after debiting loss of stock by fire ₹ 50,000)
31st March 2021	(1,50,000)	(includes voluntary retirement compensation paid ₹ 80,000)
31st March 2022	1,50,000
31st March 2023	2,00,000

Verification of books of accounts revealed the following:

(i) During the year ended 31st March, 2021, a machine got destroyed in accident and ₹ 60,000 was written off as loss in Profit & Loss Account.

(ii) On 1st July 2021, Two Computers costing ₹ 40,000 each were purchased and were debited to Travelling Expenses Account on which depreciation is to be charged @ 10% p.a. on Straight Line Method.

Calculate the value of goodwill.

[Ans. Goodwill ₹ 1,39,000.]

Hint: Profit for the year ended 31st March 2022 ₹ 2,24,000 and for 2023 ₹ 1,92,000.

Solution:-

Here are the solutions of Change in Profit Sharing ratio chapter of DK Goel Class 12 CBSE (2024-25)

S.N	Questions
1	Question – 1
2	Question – 2
3	Question – 3
4	Question – 4
5	Question – 5
6	Question – 6
7	Question – 7
8	Question – 8
9	Question – 9
10	Question – 10

S.N	Questions
11	Question – 11
12	Question – 12
13	Question – 13
14	Question – 14
15	Question – 15
16	Question – 16
17	Question – 17
18	Question – 18
19	Question – 19
20	Question – 20

S.N	Questions
21	Question – 21
22	Question – 22
23	Question – 23
24	Question – 24
25	Question – 25
26	Question – 26
27	Question – 27
28	Question – 28
29	Question – 29
30	Question – 30

S.N	Questions
31	Question – 31
32	Question – 32
33	Question – 33
34	Question – 34
35	Question – 35
36	Question – 36
37	Question – 37
38	Question – 38
39	Question – 39
40	Question – 40

S.N	Questions
41	Question – 41
42	Question – 42
43	Question – 43
44	Question – 44
45	Question – 45
46	Question – 46
47	Question – 47
48	Question – 48
49	Question – 49
50	Question – 50

S.N	Questions
51	Question – 51
52	Question – 52
53	Question – 53
54	Question – 54
55	Question – 55
56	Question – 56
57	Question – 57
58	Question – 58
59	Question – 59
60	Question – 60
61	Question – 61
62	Question – 62