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प्रश्न
Calculate the goodwill of a firm on the basis of three years' purchase of the weighted average profit of the last four years. The appropriate weights to be used and profits are:
| Year | 2015-16 | 2016-17 | 2017-18 | 2018-19 |
| Profits (₹) | 1,01,000 | 1,24,000 | 1,00,000 | 1,40,000 |
| Weights | 1 | 2 | 3 | 4 |
On a scrutiny of the accounts, the following matters are revealed:
- On 1st December, 2017, a major repair was made in respect of the plant incurring ₹ 30,000, which was charged to revenue. The said sum is agreed to be capitalised for goodwill calculation subject to adjustment of depreciation of 10% p.a. on the Reducing Balance Method.
- The closing stock for the year 2016-17 was overvalued by ₹ 12,000.
- To cover management costs, an annual charge of ₹ 24,000 should be made for the purpose of goodwill valuation.
- On 1st April, 2016, a machine having a book value of ₹ 10,000 was sold for ₹ 11,000 but the proceeds were wrongly credited to the Profit and Loss Account. No effect has been given to rectify the same. Depreciation is charged on machine @ 10% p.a. on reducing balance method.
उत्तर
| Particulars | 2015-16 | 2016-17 | 2017-18 | 2018-19 |
| Profits | 1,01,000 | 1,24,000 | 1,00,000 | 1,40,000 |
| Repair Capitalised | 30,000 | |||
| (−) Depreciation | (1,000) | (2,900) | ||
| (−) Overvaluation of Closing Stock | (12,000) | |||
| Overvaluation of Closing Stock | 12,000 | |||
| Management Cost | (24,000) | (24,000) | (24,000) | (24,000) |
| Sale Proceeds | (10,000) | |||
| Wrong Depreciation | 810 | |||
| Adjusted Profits | 77,000 | 78,000 | 1,17,900 | 1,13,910 |
| Weights | 1 | 2 | 3 | 4 |
| Product | 77,000 | 1,56,0000 | 3,53,700 | 4,55,640 |
Working Notes:
Depreciation on Plant:
| Particulars | ₹ |
| Original Cost | 30,000 |
| (−) Depreciation @ 10% for 4 months (2017-18) | (1000) |
| Written-down value | 29,000 |
| (−) Depreciation @ 10% (2018-19) | (2900) |
| Written-down value | 26,100 |
Depreciation on Machinery:
| Particulars | ₹ |
| Cost of Machine | 10,000 |
| (−) Depreciation for (2016-17) @ 10% | (1000) |
| Written-down value | 9,000 |
| (−) Depreciation for @ 10% (2017-18) | (900) |
| Written-down value | 8,100 |
| (−) Depreciation for @ 10% (2017-18) | 810 |
Weighted average profit = `"Total of weighted profit"/"Total of weighs"`
= `(77000 + 156000 + 353700 + 455640)/(1 + 2 + 3 + 4)`
= `1042340/10`
= 104234
Goodwill = Weighted average profit × No. of years purchase
= 104234 × 3
= 312702
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संबंधित प्रश्न
A business has earned average profits of Rs. 1,00,000 during the last few years. Find out the value of goodwill by capitalisation method, given that the assets of the business are Rs. 10,00,000 and its external liabilities are Rs. 1,80,000. The normal rate of return is 10%?
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 ₹ 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.
Divya purchased Jyoti's business with effect from 1st April, 2019. Profits shown by Jyoti's business for the last three financial years were:
| 2016-17 | ₹ 1,00,000 (including an abnormal gain of ₹ 12,500). |
| 2017-18 | ₹ 1,25,000 (after charging an abnormal loss of ₹ 25,000). |
| 2018-19 | ₹ 1,12,500 (excluding ₹ 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 year's purchase of the average profit of the last three years.
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| Year Ended | 31st March, 2015 | 31st March, 2016 | 31st March, 2017 | 31st March, 2018 | 31st March, 2019 |
| Profits (₹) | 1,25,000 | 1,40,000 | 1,20,000 | 55,000 | 2,57,000 |
Scrutiny of books of account revealed the following:
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| Net Profit (₹) | 2,30,000 | 2,00,000 | 1,70,000 |
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