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प्रश्न
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.
उत्तर
Goodwill = Average Profit x Number's of year's purchase
= 2,00,000 x 1.5 = Rs. 3,00,000
Working Notes:
WN: 1 Calculation of Profits of last three years
|
Year |
Profit |
|
1st Year |
1,00,000 |
|
2nd Year |
2,00,000 (1,00,000 2) |
|
3rd Year |
3,00,000 (2,00,000 ×1.5) |
|
Total Profit |
6,00,000 |
WN: 2 Calculation of Average Profit
Average Profit = `"Total Profits for past given years"/"Number of Years"`
= `[ 6,00,000 ]/3`
= Rs. 2,00,000.
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संबंधित प्रश्न
Explain various methods of valuation of goodwill.
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| Year | 2014-15 | 2015-16 | 2016-17 | 2017-18 | 2018-19 |
| Profits (₹) | 14,000 | 15,500 | 10,000 | 16,000 | 15,000 |
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(i) Manu will be given 2/5th share of the profit.
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Profits of the previous three years ended 31st March, were:
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| Profits (₹) | 80,000 | 145,000 | 160,000 | 200,000 |
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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:
(i) A second-hand machine was purchased for ₹ 5,00,000 on 1st July, 2017 and ₹ 1,00,000 were spent to make it operational. ₹ 1,00,000 were wrongly debited to Repairs Account. Machinery is depreciated @ 20% p.a. on Written Down Value Method.
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Super profit is the difference between _____________.
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From the following information, calculate the value of goodwill on the basis of 3 years purchase of average profits of last four years.
| Year | Result | Amount (₹) |
| 2015 | Profit | 5,000 |
| 2016 | Profit | 8,000 |
| 2017 | Loss | 3,000 |
| 2018 | Profit | 6,000 |
From the following information relating to a partnership firm, find out the value of its goodwill based on 3 years purchase of average profits of the last 4 years:
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Find out the value of goodwill by capitalising super profits:
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- Profits for the last four years are ₹ 30,000, ₹ 40,000, ₹ 50,000 and ₹ 45,000.
- A non-recurring income of ₹ 3,000 is included in the above mentioned profit of ₹ 30,000.
- Average capital employed is ₹ 3,00,000.
From the following information, find out the value of goodwill by capitalisation method:
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- Tangible assets of the firm ₹ 2,20,000
- Liabilities of the firm ₹ 70,000.
Goodwill is to be calculated at one and half years’ purchase of average profit of last 5 years. The firm earned profits during 3 years as ₹ 20,000 ₹ 18,000 and ₹ 9,000 and suffered losses of ₹ 2,000 and ₹ 5,000 in the last 2 years. The amount of goodwill will be:
What is the need for the valuation of goodwill?
A business has earned average profits of Rs. 1,00,000 during the last few years and the normal rate of return in a similar business is 10%. Ascertain the value of goodwill by capitalization average profits method, given that the value of net assets of the business is Rs. 8,20,000.
