Question

Calculate the goodwill of a firm on the basis of three year’s purchase of the weighted average profit of the last four years. Profit of these four years ended 31st March were: Year Ended 31.03.12 31.03.13 31.03.14 31.03.15 Profit 40,400 49,600 40,000 60,000 The weight assigned to each year ended 31st March are 2012-1; 2013-2; 2014-3;2015-4. You are provided with the following additional information: i) On 31st March, 2014, a major plant repair was undertaken for Rs. 12,000 which was charged to revenue. This sum is to be capitalized for goodwill calculation subject to adjustment of depreciation of 10% p.a. on Reducing Balance Method. ii) The closing stock for the year ended 31st March, 2013 was overvalued by Rs. 4,800. iii) To cover management cost on an annual charge of Rs. 9,600 should be made for the purpose of goodwill valuation.​

Answer 1

Answer:

answer is right of question

Answer 2

Answer:

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