Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Admission of a Partner

Question:
"From the following information calculate Capitalised value of the firm- Normal Rate of Return - 12% Profits for last three years-
i. 80,000 ( including gain on the sale of fixed assets of Rs 30,000)
ii. 1,50,000
iii. 2,00,000 (including a loss by theft of Rs 32,000)."
Options:
12,00,000
17,280
1,44,000
11,00,000
Correct Answer:
12,00,000
Explanation:
"A.P = (80,000- 30,000) + 1,50,000 + ( 2,00,000+32,000)/3
= 4,32,000/3
= 1,44,000
Capitalised Value = AP * 100 / NRR
= 1,44,000 * 100/12
= 12,00,000
"