(Average Profit Method when Adjustments are Made).
Aman purchased Bharatendu's business with effect from 1st April, 2019. It was agreed that the firm's goodwill will be valued at two years' purchase of average normal profit of the lst three years. Profits of Bharatendu's business for last three years ended 31st March, were:
2017 : Rs. 1,00,000 (including an abnormal gain of Rs. 10,000),
2018 : Rs. 1,10,000 (after charging an abnormal loss of Rs. 20,000),
2019 : Rs. 85,000 (including interest of Rs. 5,000 from non-trade investment).
Calculate value of the firm's goodwill.

Devya purchased Joyti's business with effect from 1st April, 2019. Profits shown by Jyoti's business for the last three financial years were: 2016 - 17 : Rs. 1,00,000 (including an abnormal gain of Rs. 12,500). 2017 - 18 : Rs. 1,25,000 (after charging an abnormal loss of Rs. 25,000). 2018 - 19 : Rs. 1,12,500 (excluding Rs. 12,500 as insurance premium on firm's property - now to be insured). Calculate the value of firm's goodwill on the basis of two years' purchase of the average profit of he last three years.

Bhaskar and Pillal are pratners sharing profits and losses in the ratio of 3 : 2. They admit Kanika into partnership for 1/4th share in profit. Kanika brings in her share fo goodwill in cash. Goodwill for this purpose is to be calculated at to be calculated at two years' purchase of the average normal profit of past three years. Profits of the last three years ended 31st March, were: 2017 - Profit Rs. 50,000 (including profit on sale of assets Rs. 5,000). 2018 - Loss Rs. 20,000 (including loss by fire Rs. 30,000). 2019 - Profit Rs. 70,000 (including insurance claim received Rs. 18,000 and interest on investments and Dividend received Rs. 8,000). Calculate the value of goodwill. Also, calculate goodwill brought in by Kanika.

Bharat and Bhushan are partners sharing profits in the ration of 3:2 . They decided to amit Manu as a partner from 1st April, 2019 on the following terms: (i) Manu will be given 2/5th share of the profit. (ii) Goodwill of the firm will be valued at two years' purchase of three years' normal average profit of the firm. Profits of the previous three years ended 31st March, were: 2019 - Profit Rs. 30,000 (after debiting loss of stock by fire Rs. 40,000). 2018 - Loss Rs. 80,000 (Includes voluntary retirement compensation paid Rs. 1,10,000). 2017 - Profit Rs. 1,10,000 (Including a gain (profit) of Rs. 30,000 on the sale of fixed assets). Calculate the value of goodwill .

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

(Average profit Method when Past Adjustments are Made). Simran purchased Anita's business on 1st April, 2019. It was agreed to value goodwill at three years' purchase of average normal profit of the last four years. The profits of Anita's business for the last four years were: {:("Year Ended",,Rs.),("31st March, 2016",," 90,000,"),("31st March, 2017",,"1,60,000,"),("31st March, 2018",,"1,80,000,"),("31st March, 2019",,"2,20,000."):} Following further facts are noticed from the books of account that: 1. During the year ended 31st March, 2016, an asset was sold at a gain (profit) fo Rs. 10,000. 2. During the year ended 31st March, 2017, a machine got destroyed in accident and Rs. 30,000 was written off as loss in Profit and Loss Account. 3. During the year ended 31st March, 2018, firm's assets were not insured due to oversight. insurance premium being Rs. 10,000. Calculate the value of goodwill.

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.

Dinesh and Mahesh are partners sharing profits and losses in the ratio of 3 : 2. They admit Ramesh into partnership for 1/4th share in profits. Ramesh brings in his share of goodwill in cash. Goodwill for this purpose shall be calculated at two years' purchase of the weighted average normal profit of past three years. Weights beling assigned to each year 2017 - 1, 2018 - 2, 2018 - 2 and 2019 - 3. Profits of the last three years were: 2017 - Profit Rs. 50,000 (including profits on sale of assets Rs. 5,000). 2018 - Loss Rs. 20,000 (including loss by fire Rs. 35,000). 2019 - Profit Rs. 70,000 (including insurance claim received Rs. 18,000 and interest on investments and dividend received Rs. 8,000). Calculate the value of goodwill. Also, calculate the goodwill brought n by Ramesh.

(Average Profit Method when Past Adjustments are Made). Om, Shanti and Namo are partners sharing profits and losses equally. They agree admit Dev for equal share. For this purpose, goodwill is to be valued at four years' purchase of average profit of last five years. Profits for the past five years. Profits for the past five years were: On 1st April, 2018, 5 cycles costing Rs. 20,000 were purchased and were wrongly debited to Travelling Expenses. Depreciation on cycles was to be charged @ 25% Calculate value of good will.

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.

(Weighted Average Profit Method when Past Adjustments are Made.) Akhil and Nikhil are partners sharing profits equally. They admitted Dinesh into partnership. It was agreed to value goodwill at three years' purchase following Weighted Average Profit Method on the basis of past five years' profits. Weights assigned to each year would be - years ended 31st March, 2015 - 1, 2016 - 2, 2017 - 3, 2018 - 4 and 2019 - 5. Scrutiny of books of account revealed the following: 1. There was an abnormal loss of Rs. 15,000 during the year ended 31st March, 2015. 2. There was an abnormal gain of Rs. 10,000 during the year ended 31st March, 2017. 3. Closing Stock as on 31st March, 2018 was overvalued by Rs. 15,000. Calculate value of goodwill.