Accountancy, asked by rajdeora, 7 months ago

Calculate the amount of goodwill. The goodwill of the firm is to be valued at three years purchase of the average profit of last 5 years. The results for the last five years were: 2012-13 Rs. 18,000 profit, 2013-14 Rs. 18,000 profit, 2014-15 Rs. 9,000 loss, 2015-16 Rs. 21,000 profit, 2016-17 Rs. 22,000 profit.

Answers

Answered by TrishaNikhilJaiswal

Answer:

a survey was conducted by a group of students as a part of theri environment awareness programme in which they collected the following data regarding the number of plants in 20houses in a locality find the mean number of plants per house in step deviation method

Answered by Anonymous

Explanation:

The amount of Goodwill = 45,000

Explanation:

Given :

• The Goodwill of firms should be valued on the basis of 3 year purchase

• 4 years average profit

To find :

• Calculate the amount of Goodwill

Solution :

Goodwill = Average Profit × Number of year's Purchases

Average profit =

$sf{\longrightarrow{\dfrac{Total \: Profit \: for \: past \: given \: years}{Number \: of \: years}}}$

Nubervof years

Total Profit for past given years

$\sf{\longrightarrow{\dfrac{12,000 \: + \: 18,000\: + \: 16,000 \: + 14,000}{4}}}⟶⟶ 4$

Number ofvyears

Total Profit for

past given years

12,000+18,000+16,000+14,000

⟶

12,000+18,000+16,000+14,000

$\sf{\longrightarrow{\dfrac{60,000}{4} = 15,000}}⟶4$

$\sf{\longrightarrow{\dfrac{60,000}{4} = 15,000}}⟶ 4⟶ 4$

60,000

=15,000⟶4

60,000

=15,000

Goodwill = Average Profit × Number of year's Purchases

Number of years Purchases = 3 years

Goodwill = 15,000 × 3

$\longrightarrow \: 45,000⟶45,000⟶45,000⟶45,000$

Therefore,

The amount of Goodwill = 45,000

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