Capital Accounts of Partners Naresh and Vikesh – ₹ 5,00,000 each; Balances in Current Accounts of Naresh and Vikesh – ₹ 50,000 and ₹ 40,000 respectively; Bank Loan – ₹ 10,00,000; Goodwill ₹ 50,000; Investments – ₹ 25,000; Advertisement Suspense – ₹ 15,000. Based on the above information, Capital Employed for the purposes of the valuation of Goodwill will be
Capital Accounts of Partners Naresh and Vikesh – ₹ 5,00,000 each; Balances in Current Accounts of Naresh and Vikesh – ₹ 50,000 and ₹ 40,000 respectively; Bank Loan – ₹ 10,00,000; Goodwill ₹ 50,000; Investments – ₹ 25,000; Advertisement Suspense – ₹ 15,000.
Based on the above information, Capital Employed for the purposes of the valuation of Goodwill will be
a) ₹ 10,90,000
b) ₹ 10,75,000
c) ₹ 10,00,000
d) ₹ 10,40,000
Anurag Pathak Changed status to publish April 17, 2023
Ans – c)
Explanation:-
Capital Employed = Partner’s Capital + Partner’s Current account Balances – Goodwill – Investments – Advertisement Suspense
Capital Employed = 5,00,000 + 5,00,000 + 50,000 + 40,000 – 50,000 – 25,000 – 15,000
Capital Employed = ₹ 10,00,000
Anurag Pathak Changed status to publish April 17, 2023
