On 1st April 2018, the firm had assets of ₹ 1,00,000 excluding stock of ₹ 20,000. The current liabilities were ₹ 10,000 and the balance constituted Partner’s Capital Accounts.
Solution:-
Commerce School
Student Community
Archives Answers
Answer
A firm earns a profit of ₹ 5,00,000. The normal Rate of Return in a similar type of business is 10%. The value of total assets (excluding goodwill) and total outsider’s liabilities as on the date of goodwill are ₹ 55,00,000 and ₹ 14,00,000 respectively.
Solution:-
A business has earned an average profit of ₹ 4,00,000 during the last few years and the normal rate of return in a similar business is 10%. Find the value of goodwill by:
Solution:-
From the following particulars, calculate the value of goodwill of a firm by the Capitalisation of Average Profit Method.
Solution:-
Puneet and Tarun are in the restaurant business having credit balances in their fixed capital accounts as ₹ 2,50,000 each. They have credit balances in their Current Accounts of ₹ 30,000 and ₹ 20,000 respectively. The firm does not have any liability.
Solution:-
A and B were partners in a firm with capitals of ₹ 3,00,000 and ₹ 2,00,000 respectively, The normal rate of return was 20% and the capitalised value of average profits was ₹ 7,50,000. Calculate the goodwill of the firm by capitalisation of the average profit method.
Solution:-
A firm earned an average profit of ₹ 3,00,000 during the last few years. The normal rate of return of the industry is 15%. The assets of the business were ₹ 17,00,000 and its liabilities were ₹ 2,00,000. Calculate the goodwill of the firm by Capitalisation of average profit.
Solution:-
From the following information, Calculate the value of the goodwill of the firm by applying Capitalisation Method. Total Capital of the firm ₹ 16,00,000. Normal Rate of Return 10% Profit for the year ₹ 2,00,000
Solution:-
Ayub and Amit are partners in a firm and they admit Jaspal into partnership w.e.f. 1st April 2023. They agreed to value goodwill at 3 years’ purchase of super profit method for which they decided to average profit of last 5 years. The profits for the last 5 years were:
Solution:-
Average profit earned by a firm is ₹ 7,50,000 which includes overvaluation of stock of ₹ 30,000 on an average basis. The capital invested in the business is ₹ 42,00,000 and the normal rate of return is 15%. Calculate the goodwill of the firm on the basis of 3 times the super profit.
Solution:-