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Calculate value of goodwill on the basis...

Calculate value of goodwill on the basis of three years' purchase of average profit of the preceding five years which were as follows:

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The correct Answer is:
Goodwill - Rs. 30,00,000.
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Profit of a firm for the last five years were: Calculate value of goodwill on the basis of three years' purchase of the weighted average profit after assigning weights 1, 2, 3, 4 and 5 respectively to the profits for years ended 31st March, 2015, 2016, 2017, 2018 and 2019.

The following information relates to a partnership firm: (a) Sundry Assets of the firm Rs. 6,80,000. Outside Liabilities Rs. 60,000. (b) Profits and losses for the past years : Profit 2013 Rs. 50,000, Loss 2014 Rs. 10,000, Profit 2015 Rs. 1,64,000 and Profit 2016 Rs. 1,80,000. (c) The normal rate of return in a similar type of business is 12%. Calculate the value of goodwill on the basis of : (i) Three year's purchase of average profits. (ii) Three year's purchase of super profits. (iii) Capitalisation of average profits, and (iv) Capitalisation of super profits.

Calculate the value of firm's goodwill on the basis of one and half years' purchase of the average profit of the last three years. The profit for first year was Rs. 1,00,000, Profit for the second year was twice the profit of the first year and for the third year profit was one and half times of the profit of the second year.

(Super Profit Method). A firm earned net profits during the last three years as: {:("Years",I,II,III),("Profits(Rs.)","18,000","20,000","22,000"):} The capital investment of the firm is Rs. 60,000. Normal return on the capital is 10% . Calculate value of goodwill on the basis of three years' purchase of the average super profit for the last three years.

Calculate Goodwill on the basis of two years' purchase of average profits of last six years. Profits are as follows : {:("Year","Rs.","Profit/Loss"),("1st A","60,000","Profit"),("2nd","40,000","Loss"),("3rd","30,000","Loss"),("4th","1,00,000","Profit"),("5th","1,70,000","Profit"),("6th","2,20,000","Profit"):}

The books of Ram and Bharti showed that the capital employed on 31.12.2016 was Rs. 5,00,000 and the profits for the last 5 years: 2015 Rs. 40,000, 2014 Rs.50,000, 2013 Rs. 55,000, 2012 Rs. 70,000 and 2011 Rs. 85,000. Calculate the value of goodwill on the basis of 3 year purchase of the average super profits of the last 5 years assuming that the normal rate of return is 10%.

Profits of a firm for the year ended 31st March for the last five years were: Calculate value of goodwill on the basis of three years' purchase Weighted Average Profit after assigning weights 1, 2, 3, 4 and 5 respectively to the profits for years ended 31st March, 2015, 2016, 2017, 2018 and 2019.

The profits ear ned by a firm during the last four years were as follows: {:("Year ended 31st March","Profits (Rs.)"),(2013,"80,000"),(2014,"1,00,000"),(2015,"1,10,000"),(2016,"1,50,000"):} Calculate the value of goodwill on the basis of three year's purchase of weighted average profits. Weights to be used are 1,2,3 and 4 respectively to the profits for 2013, 2014, 2015 and 2016.

TS GREWAL-GOODWILL: NATURE AND VALUATION-Exercise
  1. Goodwill is to be valued at three years' purchase of four years' avera...

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  2. Profit for the five years ending on 31st March, are as follows: Year...

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  3. Calculate value of goodwill on the basis of three years' purchase of a...

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  4. Calculate the value of firm's goodwill on the basis of one and half ye...

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  5. Purav and Purvi are partners in a firm sharing profits and losses in t...

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  6. Annu, Baby and Chetan are partners in a firm sharing profits and losse...

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  7. Devya purchased Joyti's business with effect from 1st April, 2019. Pro...

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  8. Abhay, Babu and Charu are pratners sharing profits and losses equally....

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  9. Bharat and Bhushan are partners sharing profits in the ration of 3:2 ...

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  10. Bhaskar and Pillal are pratners sharing profits and losses in the rati...

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  11. Sumit pruchased Amit's business on 1st april, 2019, Goodwill was decid...

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  12. Geet and Meet are partners in a firm. They admit Jeet into partnership...

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  13. Profits of a firm for the year ended 31st March for the last five year...

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  14. A and B are partners sharing profits and losses in the ratio of 5 : 3....

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  15. Raman and Daman are partners sharing profits in the ratio of 60 : 40 a...

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  16. Calculate goodwill of a firm on the basis of three Years' purchase of ...

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  17. Dinesh and Mahesh are partners sharing profits and losses in the ratio...

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  18. Mambir and Nimrat are partners and they admit Anahat into partnership....

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  19. Mahesh and auresh are partners and they admit Naresh into partnership....

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  20. Calculate the goodwill of a firm on the basis fo three years' purchase...

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