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प्रश्न
Compute the value of goodwill on the basis of four years’ purchase of the average profits based on the last five years? The profits for the last five years were as follows:
| Rs. | |
| 2013 | 40,000 |
| 2014 | 50,000 |
| 2015 | 60,000 |
| 2016 | 50,000 |
| 2017 | 60,000 |
उत्तर
Average Profit = `"Sum of given year's Profit"/"Number of given years"`
|
Year |
Profit |
|
2013 |
40,000 |
|
2014 |
50,000 |
|
2015 |
60,000 |
|
2016 |
50,000 |
|
2017 |
60,000 |
|
Sum of 5 years profit |
2,60,000 |
Average Profit = = `[52,000]/5` = 52,000
Goodwill = Average Profit × Number of Year’s Purchases
= 52,000 × 4 = Rs 2,08,000
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संबंधित प्रश्न
Capital employed in a business is Rs. 2,00,000. The normal rate of return on capital employed is 15%. During the year 2015 the firm earned a profit of Rs. 48,000. Calculate goodwill on the basis of 3 years purchase of super profit?
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Profits for the five years ending on 31st March, are as follows:
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Calculate goodwill of the firm on the basis of 4 years' purchase of 5 years' average profit.
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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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| 31st March, 2019 | 2,88,000; |
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| 31st March, 2017 | 1,87,200; |
| 31st March, 2016 | 2,53,200. |
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| 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). |
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Bharat and Bhushan are partners sharing profits in the ratio of 3 : 2. They decided to admit Manu as a partner from 1st April, 2019 on the following terms:
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Calculate goodwill of a firm on the basis of three years' purchase of the Weighted Average Profit of the last four years. The profits of the last four financial years ended 31st March, were: 2016 − ₹ 25,000; 2017 − ₹ 27,000; 2018 − ₹ 46,900 and 2019 − ₹ 53,810. The weights assigned to each year are: 2016 − 1; 2017 − 2; 2018 − 3; 2019 − 4. You are supplied the following information:
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| Profits (₹) | 1,01,000 | 1,24,000 | 1,00,000 | 1,40,000 |
| Weights | 1 | 2 | 3 | 4 |
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| Year ended | 31st March, 2019 | 31st March, 2018 | 31st March, 2017 |
| Net Profit (₹) | 2,30,000 | 2,00,000 | 1,70,000 |
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During the year 2018-19, there was a loss of ₹ 20,000 due to fire which was not accounted for while calculating the profit. Calculate the value of goodwill and pass the necessary journal entries to the treatment of goodwill.
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From the following details, calculate the value of goodwill at 2 years purchase of super profit:
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Identify the formula for calculating goodwill with the help of the Average Profit Method.
