Question

27. The profits for the last five years are : 2015 34,000 ; 2016 * 23,000 ; 2017 * 30,000; 2018 * 28,000 ;
2019 27,000.
The weights assigned to each year are : 2015 = 1 ; 2016 = 2; 2017 = 3; 2018 = 4; 2019 = 5.
Additional information :
(i) On October 1, 2019, a motor car shed was constructed for 50,000. The same was charged to
revenue. Depreciation @ 10% per annum was also not charged on this.
(ii) The closing stock for the year 2018 was undervalued by * 4,000.
(iii) Profit for the year 2017 was distributed to partners in the ratio of 2 : 2:1 instead of 3: 2:1.
(iv) An annual insurance premium of 3,000 has not been taken into account during any of the years.
The same should be taken into consideration for the purpose of valuation of goodwill.
Calculate the value of Goodwill of a firm on the basis of four years' purchase of the weighted average
profits of last five years.​

Answer 1

Explanation:

wvdhscsuehwcehsvshscshshscscscsgdcdvcgdegeggeeyehegdyegdggsvdhegdvvdvdhdvdgdgdhegegsvsvdvhscshevhssvdvdbhdvdhdvgegu dshhsvdgshsgecsgsegdgdcdcdhdvdhdcdcshcdhsvdcshcdhsvshdchecdhevdhcdhsvshsvhdvdhevdhsgvdhdvdhvdvdvshdvhdveywuwchehsjvsgshsh bvevdvd dvevvdvdsv DVD dveveh dgwje sgwjd wgjq d wheje sfe dvdgehdc evwhve whehwvehd dgquhegsvwvwhehhwvehgehvegegehwg egegevvevehe ehevevegge egevvehegqivwjwvehe dgwvvebvwhevq ebvebevhqvw wbwvwhevwhh w decades jaden jv s have s jb whhavwva scwvevgsjwcwhs dhevebe whwhd dbehsvwhwhvwgevdhe dbbebe