Question

14
c) Normal use of the 10%
) Capital employed 3.000.000
re rest value of an annuity of one rupee for 5 years at 10
(9) The profits indedes non cumang pronts on an average basis of 3.000
You are required to calculate the value of goodwill (a) as per bive years' pre
super profits) as per capitalisation of super probits method and oper
method
18. The following information is available:
(1) Average capital employed 1.00.000
(2) Present value of an annuity of 1 for 5 years at 10% is? 378
(3) Normal rate of profit is 10%
() Net profits for five years are: Ist year 15.000; 2nd year 16,000, 3rd year 2000
4th year 18.000, 5th year 20,000
Profits included non-recurning profits on an average basis of 1.500 out of which
300 has the recumnng tendency. Remunerabon of proprietor is 800 pa, which is not
charged in the accounts.
Find out the value of goodwill : (@) as per 5 years purchase of super profits. (b) as per
annuity method : and (c) as per capitalisation of super profits method
19. The following are the particulars about Gupla & Co, a partnership orm
(1) Average capital employed in the business is 7,00,000.
(2) Net trading profit of the form for the past three years:
1.07.600, 90,700, 71.12,500.
(3) Market rate of interest on investments 8%.
(4) Rate of nsk retum on capital invested in business 2%.
(5) Fair remuneration to the partners for their services 12,000 per annum
(6) Profits included non-recurring profits on average basis of 1.000 out of which w
considered that even non-recurring profits had a tendency to be more
average rate of 600 per year.
7) Sundry assets of the firm amounted to ? 7 50.000 and current Labines 30 000
Ascertain the value of goodwill of the firm under: (w three years purchase of
profits method , ) capitalisation method
ICU, B.Com -​

Answer 1

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Answer 2

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yes upper answer is right