Question

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MARATE Final Submit
Time lett 00 55 16
Question No. 17
• Suppose total tangible assets are
RS. 100000, Goodwill Rs. 10000, pref
share capital Rs. 20000 ,Other
liabilities = RS. 40000 , Equity shares
capital is Rs. 60000 of 10000 shares
Calculate the value of shares​

Answer 1

Answer:

Step-by-step explanation:

Under this method, value of share is equal to net assets.

Net assets = total tangible assets – total liabilities (Including pref. share capital) + Goodwill

Value of Share = Net Assets / No. of Shares

total tangible assets are Rs. 100000.

Goodwill Rs. 10000

pref. share capital Rs. 20000.

Other liabilities = RS. 40000.

Equity shares capital is Rs. 60000 of 10000 shares.

Calculate the value of shares Net Asset = 100000 – 20000 -40000 + 10000 = 50000

Value of Shares = 50000 / 10000 = Rs. 5