Question

a farm on profit of rupees 10000 6,000 12000 in 18000 info deciding years the capital invested is 50000 the rate of return is such business is 15% per annum calculate the value of goodwill at three years purchase by super profit method
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Answer 1

Answer:

Which part of a seed stores the baby plant? What is the nature of digestive juices in the stomach?why do we keep food and vegetables in refrigerator?

Answer 2

Answer: here is your answer

Information:

(a) Average Capital Employed is Rs.6,00,000.

(b) Net profit/(Loss) of the firm for the last three years ended are:

31  

st

March,2018 - Rs.2,00,000, 31  

st

March,2017 - Rs.1,80,000 and 31  

st

March,2016 - Rs.1,60,000

(c) Normal rate of Return in similar business is 10% .

(d) Remuneration of Rs1,00,000 to partners is to be taken as charge against profit.

(e) Assets of the firm (excluding goodwill, fictitious assets and non-trade investments) is Rs.7,00,000 whereas Partner's capital is Rs. 6,00,000 and outside Liabilities Rs.1,00,000.