(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.

Abhay, Babu and Charu are pratners sharing profits and losses equally. They agree to admit Daman for equal share of profit. For this purpose, the value of goodwill is to be calculated on the basis of four years' purchase of average profit of last five years. These profits for the year 31st March ,were: On 1st April, 2018, a car costing Rs. 1,00,000 was purchased and debited to Travelling Expenses Account, on which depreciation is to be charged @ 25% . Interest of Rs. 10,000 on Non-trade investments is credit to income for the year ended 31st March, 2018 and 2019. Calculate the value of goodwill after adjusting the above.

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). Luve and Kush are partners sharing profits equally. They admit Shubh into partnership for equal share. Goodwill was agreed to be valued at two years' purchase of average profit of last four years. Profits for the last four years were: {:("Year Ended",,"Normal Profit/(Loss) (Rs.)"),("31st March, 2016",," 70,000,"),("31st March, 2017",,"1,00,000,"),("31st March, 2018",," 55,000(Loss),"),("31st March, 2019",,"1,45,000".):} The books of Account of the firm revealed as follows: 1. Firm had abnormal gain of Rs. 10,000 during the year ended 31st March, 2016. 2. Firm incurred abnormal loss of Rs. 20,000 during the year ended 31st March, 2017. 3. Repairs to car amounting to Rs. 50,000 was wrongly debited to vehicles on 1st May, 2017. Depreciation was charged on vehicles @ 10% on Straight Line Method. Calculate the value of Goodwill.

A and B are partners sharing profits in the ratio of 3:1. They admit C for 1/4 share in the future profits. The new profit sharing ratio will be:

Purav and Purvi are partners in a firm sharing profits and losses in the ratio of 2:1 . They decide to take parv into partnership for 1/4th share on 1st April, 2019. For this purpose, goodwill is to be valued at four times the average annual profit of the previous four or five years, whichever is higher. The agreed profits for goodwill purpose of the past five years are: Calculate the value of goodwill.

A and B are partners sharing profits and losses in the ratio of 3 : 1. It was decided that with effect from 1st April, 2015 the profit sharing ratio will be 5 : 3, Goodwill is to be val ued at 2 year's purchase of average of 3 year's profits. The profits for the years ending 31st March 2013, 2014 and 2015 were Rs. 36,000, Rs. 32,000 and Rs. 40,000 respectively. Pass necessary journal entry for the treatment 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.

(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.