(12)
ID)
Luvand Kush are partners sharing profits equally. They admit Shubh into partnership for equal
share. Goodwill was agreed to be valued at two years purchase of average profit of last four
years. Profits for the last four years were:
Year Ended
3
31st March, 2016
70,000;
31st March, 2017
1,00,000;
31st March, 2018
55,000 (Loss);
31st March, 2019
1,45,000
The books of account of the firm revealed as follows:
1. The firm had abnormal gain of * 10,000 during the year ended 31st March, 2016.
2. The firm incurred abnormal loss of ? 20,000 during the year ended 31st March, 2017
3. Repairs to car amounting to ? 50,000 was wrongly debited to vehicles on 1st May, 2017
Depreciation was charged on vehicles @ 10% on Straight Line Method.
Calculate the value of Goodwill
.
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Here is ur Answer ⤵️
The key points favoring each of these financial statements as being the most important are:
Income statement. The most important financial statement for the majority of users is likely to be the income statement, since it reveals the ability of a business to generate a profit. ...
Balance sheet. ...
Statement of cash flows.
Hope it helps you ✔
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