Question : Anupma, Pumima and Ruchika are partners in a business. Balances in their Capital and Current Accounts as on 31st March. 2019 were :
Capital Account Current Account
(Rs.) (Rs.)
Anupma 6,00,000 60,000 (Dr.)
Pumima 5,00,000 30,000 (Dr.)
Ruchika 5,00,000 10,000 (Cr.)
The firm earned an average profit of Rs.2,40,000. If the normal rate of return is 12%, the value of goodwill by Capitalisation of the Average Profit Method will be:
Option 1: 4,80,000
Option 2: 3.80,000
Option 3: 5,60,000
Option 4: Nil
Correct Answer: 4,80,000
Solution : Answer = 4,80,000
Total capitalization value of the firm = 2,40,000X100/12=20,00,000
Net assets = 16,10,000-90,000= 15,20,000
Goodwill -=20,00,000-15,20,000=4,80,000
Hence, the correct option is 1.
