{"id":135465,"date":"2023-03-31T15:51:55","date_gmt":"2023-03-31T10:21:55","guid":{"rendered":"https:\/\/www.mapsofindia.com\/my-india\/?p=135465"},"modified":"2023-03-31T15:51:55","modified_gmt":"2023-03-31T10:21:55","slug":"aayush-and-aarushi-are-partners-sharing-profits-and-losses-in-the-ratio-of-32-they-admitted-naveen-into-partnership-for","status":"publish","type":"post","link":"https:\/\/www.mapsofindia.com\/my-india\/quiz\/aayush-and-aarushi-are-partners-sharing-profits-and-losses-in-the-ratio-of-32-they-admitted-naveen-into-partnership-for","title":{"rendered":"Aayush and Aarushi are partners sharing profits and losses in the ratio of 3:2, They admitted Naveen into partnership for&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;"},"content":{"rendered":"<h2>Question : Aayush and Aarushi are partners sharing profits and losses in the ratio of 3:2, They admitted Naveen into partnership for 1\/4 share. Goodwill of the firm was to be valued at three years\u2019 purchase of super profits. Average net profit of the firm was $ 20,000, Capital investment in the business was $ 50,000 and Normal Rate of Return was 10%. Calculate the amount of Goodwill premium brought by Naveen.<\/h2>\n<h3>The correct answer is -First, let&#8217;s calculate the super profit of the firm:<\/h3>\n<h3>Normal Rate of Return = 10% Average net profit of the firm = $20,000 Capital investment in the business = $50,000<\/h3>\n<h3>Therefore, Normal Profit = Capital investment x Normal Rate of Return Normal Profit = $50,000 x 10% = $5,000<\/h3>\n<h3>Super Profit = Average net profit of the firm &#8211; Normal Profit Super Profit = $20,000 &#8211; $5,000 = $15,000<\/h3>\n<h3>Now, the value of Goodwill can be calculated as three years&#8217; purchase of super profits:<\/h3>\n<h3>Goodwill Value = 3 x Super Profit Goodwill Value = 3 x $15,000 = $45,000<\/h3>\n<h3>Since Naveen is being admitted for 1\/4 share, his share in the goodwill premium will be:<\/h3>\n<h3>Naveen&#8217;s Share in Goodwill = 1\/4 x $45,000 = $11,250<\/h3>\n<h3>Therefore, the amount of Goodwill premium brought by Naveen is $11,250.<\/h3>\n","protected":false},"excerpt":{"rendered":"<p>Question : Aayush and Aarushi are partners sharing profits and losses in the ratio of 3:2, They admitted Naveen into partnership for 1\/4 share. Goodwill of the firm was to be valued at three years\u2019 purchase of super profits. Average net profit of the firm was $ 20,000, Capital investment in the business was $ [&hellip;]<\/p>\n","protected":false},"author":21830,"featured_media":132233,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12119],"tags":[],"class_list":{"0":"post-135465","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-quiz"},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.mapsofindia.com\/my-india\/wp-json\/wp\/v2\/posts\/135465","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.mapsofindia.com\/my-india\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.mapsofindia.com\/my-india\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.mapsofindia.com\/my-india\/wp-json\/wp\/v2\/users\/21830"}],"replies":[{"embeddable":true,"href":"https:\/\/www.mapsofindia.com\/my-india\/wp-json\/wp\/v2\/comments?post=135465"}],"version-history":[{"count":1,"href":"https:\/\/www.mapsofindia.com\/my-india\/wp-json\/wp\/v2\/posts\/135465\/revisions"}],"predecessor-version":[{"id":135468,"href":"https:\/\/www.mapsofindia.com\/my-india\/wp-json\/wp\/v2\/posts\/135465\/revisions\/135468"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.mapsofindia.com\/my-india\/wp-json\/wp\/v2\/media\/132233"}],"wp:attachment":[{"href":"https:\/\/www.mapsofindia.com\/my-india\/wp-json\/wp\/v2\/media?parent=135465"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.mapsofindia.com\/my-india\/wp-json\/wp\/v2\/categories?post=135465"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.mapsofindia.com\/my-india\/wp-json\/wp\/v2\/tags?post=135465"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}