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प्रश्न
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:
(i) On 1st April, 2016, a major plant repair was undertaken for ₹ 10,000 which was charged to revenue. The said sum is to be capitalised for goodwill calculation subject to adjustment of depreciation of 10% on Reducing Balance Method.
(ii) The Closing Stock for the years ended 31st March, 2017 and 2018 were overvalued by ₹ 1,000 and ₹ 2,000 respectively.
(iii) To cover management cost an annual charge of ₹ 5,000 should be made for the purpose of goodwill valuation.
उत्तर
|
Particulars |
Year |
31st Mar., 2016 |
31st Mar., 2017 |
31st Mar., 2018 |
31st Mar., 2019 |
|
Profit |
25,000 |
27,000 |
46,900 |
53,810 |
|
|
Add: Repairs to Plant Capitalised |
|
10,000 |
|
|
|
|
Less: Depreciation @10% W.D.V |
|
1,000 |
900 |
810 |
|
|
Less: Overvaluation of Closing Stock |
|
1,000 |
2,000 |
|
|
|
Add: Overvaluation of Opening Stock |
|
|
1,000 |
2,000 |
|
|
Less: Annual Charge |
5,000 |
5,000 |
5,000 |
5,000 |
|
|
Normal Profit/Loss |
20,000 |
30,000 |
40,000 |
50,000 |
|
|
Year |
Normal Profits (₹) |
Weights |
Weighted Profits (₹) |
|
31st March, 2016 |
20,000 |
1 |
20,000 |
|
31st March, 2017 |
30,000 |
2 |
60,000 |
|
31st March, 2018 |
40,000 |
3 |
1,20,000 |
|
31st March, 2019 |
50,000 |
4 |
2,00,000 |
|
Total |
10 |
4,00,000 |
|
Weighted Average Profits = `("Total of Weighted Profits"/ "Total Weights")`
= Rs. `([4,00,000]/10)`
= Rs. 40,000
Goodwill = Weighted Average Profits x No. of Years of Purchase
= Rs. ( 40,000 x 3)
= Rs. 1,20,000
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संबंधित 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 |
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%?
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| Profits (₹) | 80,000 | 145,000 | 160,000 | 200,000 |
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| Weights | 1 | 2 | 3 | 4 |
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From the following information, calculate value of goodwill of the firm by applying Capitalisation Method: Total Capital of the firm ₹ 16,00,000.
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Which of the following is true?
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- A non-recurring income of ₹ 45,000 is included in the profits of the year 2016.
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A partnership firm earned net profits during the last three years as follows:
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What are the methods of valuation of goodwill?
