Total of Assets side of the Balance Sheet – ₹ 25,00,000, Debit Balances in Current Account of Naresh and Vikesh – ₹ 75,000 and ₹ 25,000 respectively; Bank Loan ₹ 8,00,000; Goodwill ₹ 1,00,000; Trade Investments – ₹ 25,000; Profit and Loss Accounts (Debit) – ₹ 15,000.
Total of Assets side of the Balance Sheet – ₹ 25,00,000, Debit Balances in Current Account of Naresh and Vikesh – ₹ 75,000 and ₹ 25,000 respectively; Bank Loan ₹ 8,00,000; Goodwill ₹ 1,00,000; Trade Investments – ₹ 25,000; Profit and Loss Accounts (Debit) – ₹ 15,000.
Based on the above information, Capital Employed for the purposes of the valuation of Goodwill will be
a) ₹ 16,85,000
b) ₹ 15,85,000
c) ₹ 17,85,000
d) ₹ 14,85,000
Anurag Pathak Changed status to publish April 17, 2023
Ans – d)
Explanation:-
Capital Employed = Total Assets – Goodwill – Profit and Loss Account (Dr) Balance – Bank Loan – Debit balances of partner’s Current Account
Capital Employed = ₹ 25,00,000 – ₹ 1,00,000 – ₹ 15,000 – ₹ 8,0,0000 – ₹ 75,000 – ₹ 25,000
Capital Employed = ₹ 14,85,000
Anurag Pathak Changed status to publish March 17, 2024
