Home
Class 12
ACCOUNTS
From the following particulars, calculat...

From the following particulars, calculate value of goodwill of a firm by applying Capitalisation of Average Profit Mehod:
(i) Profits of last five consecutive years ending 31st March are: 2019 - Rs. 54,000, 2018 - Rs. 42,000, 2017 - Rs. 39,000, 2016 - Rs. 67,000 and 2015 - Rs. 59,000.
(ii) Capitalisation rate`20%`.
(iii) Net assets of the firm Rs. 2,00,000.

Promotional Banner

Similar Questions

Explore conceptually related problems

From the following information, calculate value of goodwill of the firm by applying Capitalisation Method: Total Capital of the firm Rs. 16,00,000. Normal rate of return 10% . Profit for the year Rs. 2,00,000.

Goodwill is to be valued at three years' purchase of four years' average profit. Profits for last four years ending on 31st March of the firm were: 2016 - Rs. 12,000, 2017 - Rs. 18,000, 2018 - Rs. 16,000, 2019 - Rs. 14,000. Calculate ammount of Goodwill.

Calculate the value of goodwill as on 1st April, 2015, on the basis of 2(1)/(2) year's purchase of the average profits of the last five years. The profits and losses for the years ending 31st March were : 2010 Rs. 80,000, 2011 Rs. 1,00,000, 2012 Loss Rs. 30,000, 2013 Rs. 1,70,000, 2014 Rs. 1,60,000 and 2015 Rs. 1,80,000. You are informed that the profits of the year ending 31st March 2014 included profit on sale of a fixed asset amounting to Rs. 50,000 and the profits for the year 2015 were effected by a loss due to fire amounting to Rs. 20,000.

Profit for the five years ending on 31st March, are as follows: Year 2015 -Rs. 4,00,000, year 2016 - Rs. 3,98,000, Year 2017 - Rs. 4,50,000, Year 2018 - Rs. 4,45,000 and Year 2019 - Rs. 5,00,000. Calculate goodwill of the firm on the basis of 4 years' purchase of 5 years' average Profit.

From the figures given below, calculate goodwill according to the capitalisation of Average Profits Method : (i) Actual Average Profits = Rs. 72,000 (ii) Normal Rate of Return = 10% (iii) Assets = Rs. 9,70,000 (iv) Liabilities = Rs. 4,00,000

Varun and Kuber are partners in a business. Balance in Capital and Current Accounts on 31st March, 2019 were : {:(,"Capital Account","Current Account"),("Varun"," Rs. 5,00,000"," Rs. 80,000"),("Kuber"," Rs. 3,50,000"," Rs. 20,000 (Dr.)"):} Profits of the last five consecutive years ending 31st March were : 2015 Rs. 60,000, 2016 Loss Rs. 40,000, 2017 Rs. 1,30,000, 2018 Rs. 2,00,000 and 2019 Rs. 2,50,000. General Reserve appeared in the books at Rs. 50,000. If the normal rate of return is 10%, find the value of goodwill by Capitalisation of Average Profit Method.

From the following information, calculate value of goodwill of the firm: (i) At three years' purchase of Average Profit. (ii) At three years' purchase of Super Profit. (iii) On the basis of Capitalisation of Super Profit. (iv) On the basis of Capitalisation of Average Profit. Information: (a) Average Capital Employed is Rs. 6,00,000. (b) Net Profit/(Loss) of the firm for the last three years ended are: 31st March, 2018 - Rs. 2,00,000, 31st March, 2017 - Rs. 1,80,000, and 31st March, 2016 - Rs. 1,60,000. (c) Normal Rate of Return in similar business is 10% . (d) Remuneration of Rs. 1,00,000 to partners is to be taken as charge against profit. (e) Assets of the firm (excluding goodwill, fictitious assets and non-trade investments) is Rs. 7,00,000 whereas Partners' Capital is Rs. 6,00,000 and Outside Liabilities Rs. 1,00,000.

The profit for the five years of a firm are as follows – year 2013 Rs. 4,00,000, year 2014 Rs. 3,98,000, year 2015 Rs. 4,50,000, year 2016 Rs. 4,45,000 and year 2017 Rs. 5,00,000. Calculate goodwill of the firm on the basis of 4 years purchase of 5 years average profits.

Recommended Questions
  1. From the following particulars, calculate value of goodwill of a firm ...

    Text Solution

    |

  2. रासायनिक समीकरण देते हुए स्पष्ट कीजिये कि क्लोरोबेन्जीन से निम्नलिख...

    Text Solution

    |

  3. फारफोरस के निम्नलिखित ऑक्सी अम्ल, के संरचना सूत्र लिखिए - (i) हाइपोफ़ॉस...

    Text Solution

    |

  4. निमिनलखित गुणों के आधार पर द्रव-विरोधी और द्रव-स्नेही साल में अंतर् स्...

    Text Solution

    |

  5. 10 Omega के प्रतिरोध, प्रेरकत्व L की कुण्डली तथा धारिता C के स...

    Text Solution

    |

  6. दिये गये चित्र में एक LCR परिपथ दिखाया गया है एक प्रत्यावर्ती ...

    Text Solution

    |

  7. 2.0H का एक स्व-प्रेरकत्व , 18μF का एक संधारित्र तथा 10 K Omega ...

    Text Solution

    |

  8. पाच वर्ष पूर्व, A की आयु B से तीन गुनी थी तथा दस वर्ष बाद A की आयु B स...

    Text Solution

    |

  9. निम्नलिखित में संरचना बनाइए- (i) XeF(4) (ii) HCIO(3), (iii) XeOF(4)

    Text Solution

    |