Question

Illustration 3.8: Calculate goodwill of a firm on the basis of three years purchase of the average profit of the
last four years. The profit of the last four years were
On September 1, 2019 major plant reput denken for, which will changed to revenue
The said sum is to be capitalised for goodwill calculation subject to adjustment of depreciation of 10%
ful. The Closing Stock for the year 2018 was overvalued by 2.400
To cover management cost an annual charge of 4,800 should be made for purpose of goodwill valuation
Prors
OS
2017 20.200
2019 20.000
reducing balance method
pa on
(iu)​

Answer 1

Answer:

Illustration 3.8: Calculate goodwill of a firm on the basis of three years purchase of the average profit of the

last four years. The profit of the last four years were

On September 1, 2019 major plant reput denken for, which will changed to revenue

The said sum is to be capitalised for goodwill calculation subject to adjustment of depreciation of 10%

ful. The Closing Stock for the year 2018 was overvalued by 2.400

To cover management cost an annual charge of 4,800 should be made for purpose of goodwill valuation

Prors

OS

2017 20.200

2019 20.000

reducing balance method

pa on

(iu)

Explanation:

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