Question

1. X and Y are partners sharing profits and losses equally. The admit z for 1/3rd share.
Goodwill for this purpose is agreed to be valued at 3 years' purchase of the weighted average
profits of the past four years. The apropriate weights to be used are : 2000-1 ; 2001-2;
2002 3.2003 1.
Profits for the years are 2005 20,200 : 2006 24.800 : 2007- 20,000 and 2008-
30,000
On a scruting of the accounts, the following matters are reveabed : (a) On 1st Sept. 2007 a
major repair was made in respect of the plant incurring 6,000, which amount was charged
to revenue. The said sum is agreed to be capitalised for goodwill calculation subject to
adjustment of depreciation w 10% p.a. on reducing instalment method : (b) The closing stock
for the year 2006 was over valued by 2.400 ; and (c) to cover management cost an annual
charge of 4.800 should be made for the purpose of goodwill of the firm.
You are required to compute the value of goodwill of the firm,
Ans. Goodwill = 65,784​

Answer 1

Answer:

i don't understand your question ...............

Answer 2

Answer:

I know but its tooo long