Calculate Goodwill on the basis of two y...

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"):}`

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Rs. 1,60,000.

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A and B are partners sharing profits and losses in the ratio of 3 : 2. They agree to take C into partnership for 1/3rd share. For this purpose, goodwill is to be valued at two year's purchase of the average profit of last four years which were as follows : {:(,," Rs."),("Year ending on 31st March 2014",,"50,000 (Profit)"),("Year ending on 31st March 2015",,"1,20,000 (Profit)"),("Year ending on 31st March 2016",,"1,80,000 (Profit)"),("Year ending on 31st March 2017",,"70,000 (Loss)"):} On 1st April, 2016 a Motor bike costing Rs. 50,000 was purchased and debited to travelling expenses account, on which depreciation is to be charged @ 20% p.a. calculate the value of goodwill.

A, B and C are partners sharing profits and losses equally. They agree to admit D for equal share. For this purpose goodwill is to be valued at 3 year's purchase of average profits of last 5 years which were as follows: {:(,,"Rs,"),("Year ending on 31st March 2013",,"60,000 (Profit)"),("Year ending on 31st March 2014",,"1,50,000 (Profit)"),("Year ending on 31st March 2015",,"20,000 (Loss)"),("Year ending on 31st March 2016",,"2,00,000 (Profit)"),("Year ending on 31st March 2017",,"1,85,000 (Profit)"):} On 1st October, 2016 a computer costing Rs. 40,000 was purchased and debited to office expenses account on which depreciation is to be charged @25% p.a. Calculate the value of goodwill.

The following information relates to a partnership firm : (a) Profits/Loss for the last six years : {:("1st year","Rs. 20,000 Profit","4th year","Rs. 60,000 Profit"),("2nd year","Rs. 60,000 Profit","5th year","Rs. 50,000 Profit"),("3rd year","Rs. 10,000 Loss","6th year","Rs. 72,000 Profit"):} (b) Average Capital Employed is Rs. 2,00,000. (c) Rate of normal profit is 15%. Find out the value of goodwill on the basis of : (i) Four year's purchase of average profits. (ii) Four year's purchase of super profits. (iii) Capitalisation of super profits.

A firm earned net profits durning the last seven years as follows : {:(2009,"Rs.","20,000 Profit",2010,"Rs.","70,000 Loss"),(2011,"Rs.","40,000 Loss",2012,"Rs.","2,50,000 Profit"),(2013,"Rs.","2,70,000 Profit",2014,"Rs.","3,00,000 Profit"),(2015,"Rs.","3,20,000 Profit",,,):} The Capital invested in the firm is Rs. 12,00,000. Normal rate of return in the similar type of business is 10%. Calculate the value of goodwill on the basis of 2(1)/(2) years' purchases of average super profits earned durning the above mentioned seven years.

Anshul and Parul are partners sharing profits in the ratio of 3 : 2. They admit Payal as partner for 1/4th share in profits on 1st April, 2019. Payal brings RS.5,00,000 as capital and her share of goodwill by cheque. It was agreed to value goodwill at three year's purchase of average profit of last four years: {:("Profit for the last years ended 31st March were:","RS."),("2015-16","4,00,000"),("2016-17","5,00,000"),("2017-18","6,00,000"),("2018-19","7,00,000"):} Additional Information: 1. Closing stock for the year ended 31st March, 2018 was overvalued by RS.50,000. 2. RS.1,00,000 should be charged annually to cover management cost. Pass necessary Journal entries on Payal's admission.

1. The goodwill of a firm is to be worked out at three years’ purchase of the average profits of the last five years which are as follows: {:(Year,Profits(Loss)(Rs)),(2012,10000),(2013,15000),(2014,4000),(2015,(5000)),(2016,6000):} 2. The capital employed of the firm is Rs. 1,00,000 and normal rate of return is 8%, the average profits for last 5 years are Rs. 12,000 and goodwill is to be worked out at 3 years’ purchase of super profits, 3. Rama Brothers earn an average profit of Rs. 30,000 with a capital of Rs. 2,00,000. The normal rate of return in the business is 10%. Using capitalisation of super profits method work out the value the goodwill of the firm.

A and B are partners. They admit C for (1)/(4) th share in profits. For this purpose goodwill is to be valued at three year's purchase of super profits. Following information is provided to you : {:(,"Rs."),("A's Capital","5,00,000"),("B's Capital","4,00,000"),("General Reserve","1,50,000"),("Profit & Loss A/c (Cr.)","30,000"),("Sundry Assets","12,00,000"):} The normal rate of return is 15% p.a Average Profits are Rs. 2,00,000 per year. You are required to calculate C's share of goodwill.

X purchased the business of Y from 1st Aprit, 2019. For this purpose goodwill is to be valued at 100% of the average annual profits of the last four years. The profits shown by Y's business for the last four years were: {:("Year ended",," Rs.",),("31st March 2016","Profit","1,00,000",("after debiting loss of stock by fire Rs. 50,000")),("31st March 2017","Loss","1,50,000",("includes voluntary retirment compensation paid Rs. 80,000")),("31st March 2018","Profit","1,50,000",),("31st March 2019","Profit","2,00,000",):} Verification of books of accounts revealed the following : (i) During the year ended 31st March, 2017, a machine got destroyed in accident and Rs. 60,000 was written off as loss in Profit & Loss Account. (ii) On 1st July 2017, Two Computers costing Rs. 40,000 each were purchased and were debited to Travelling Expenses Account on which depreciation is to be charged @ 10% p.a. on Straight Line Method. Calculate the value of goodwill.

Calculate the value of goodwill on the basis of three year's purchase of the weighted average profits of the last five years. Profits to be weighted 1, 2, 3, 4 and 5, the greatest weightage to be given to last year. Profits of the last five years were: {:("Year ended",," Rs.",),("31st March, 2015 :","Profit","80,000",),("31st March, 2016 :","Profit","1,05,000",("after considering abnormal loss of Rs. 41,500")),("31st March, 2017 :","Loss","20,000",("after considering abnormal gain of Rs. 40,000")),("31st March, 2018 :","Profit","1,80,000",),("31st March, 2019 :","Profit","2,00,00",):} Books of Accounts of the firm revealed that : (i) Closing Stock as on 31st March, 2015 was overvalued by Rs. 40,000. (ii) Reparirs to Machinery Rs. 60,000 were wrongly debited to Machinery Account on 1st July, 2017. Depreciation was chared on Machienery @ 20% p.a. on diminishing balance method.

Sara, Tara and Zara are partners in a firm sharing profits and losses in the ratio of 3 : 2 : 1. They decide to take Dara into partnership from 1st April, 2019 for 1/4th share in the profits. For this purpose, goodwill is to be valued at twice the average annual profit of the previous three or four years, whichever is higher. The annual profits for the purpose of goodwill for the past four years were: {:("Year Ended",,"Rs."),("31st March, 2019",," 48,000,"),("31st March, 2018",," 30,000,"),("31st March, 2017",," 31,200,"),("31st March, 2016",," 42,000".):} Calculate value of goodwill.

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