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**Working Notes:**** **

**1) Calculation of Sudha’s Share of Goodwill**

Goodwill of Firm = Average profits x 2 years purchase of average profit

= 42,000 x 2 = 84,000

Sudha’s share of goodwill = 84000 * 3/10 =25,200

**2) Interest on sudha’s capital** = 60000 * 6 /100 * 3/12 = 900

**3) Calculation of Sudha’s Share of profits**

If sales = 4,00,000

Profit = 1,00,000

If sales is 1, profit = 1,00,000 / 4,00,000

Profit = (1,00,000/4,00,000) * 1,50,000 = 37,500

Sudha’s Share = 37500 x 3/10 = 11,250

** **

**Values Involved in the given scenario:**(1) Sympathy, empathy and helping orphans.

(2) Fulfilment of social responsibility

**Working Notes:**** **

**1) Calculation of Sudha’s Share of Goodwill**

Goodwill of Firm = Average profits x 2 years purchase of average profit

= 42,000 x 2 = 84,000

Sudha’s share of goodwill = 84000 * 3/10 =25,200

**2) Interest on sudha’s capital** = 60000 * 6 /100 * 3/12 = 900

**3) Calculation of Sudha’s Share of profits**

If sales = 4,00,000

Profit = 1,00,000

If sales is 1, profit = 1,00,000 / 4,00,000

Profit = (1,00,000/4,00,000) * 1,50,000 = 37,500

Sudha’s Share = 37500 x 3/10 = 11,250

** **

**Values Involved in the given scenario:**(1) Sympathy, empathy and helping orphans.

(2) Fulfilment of social responsibility

Answer

**Working Notes:**** **

**1) Calculation of Sudha’s Share of Goodwill**

Goodwill of Firm = Average profits x 2 years purchase of average profit

= 42,000 x 2 = 84,000

Sudha’s share of goodwill = 84000 * 3/10 =25,200

**2) Interest on sudha’s capital** = 60000 * 6 /100 * 3/12 = 900

**3) Calculation of Sudha’s Share of profits**

If sales = 4,00,000

Profit = 1,00,000

If sales is 1, profit = 1,00,000 / 4,00,000

Profit = (1,00,000/4,00,000) * 1,50,000 = 37,500

Sudha’s Share = 37500 x 3/10 = 11,250

** **

**Values Involved in the given scenario:**(1) Sympathy, empathy and helping orphans.

(2) Fulfilment of social responsibility