Accountancy, asked by vinayaverma35, 1 month ago

please help anybody
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Answered by BrainlyVirat
6

Answer: Value of goodwill is Rs. 1,36,000.

Given that,

Capital employed is Rs. 16,00,000 ,

Normal rate of return is 12% ,

Goodwill is valued at 2 years' purchases of Super profit.

We need to calculate the value of goodwill under Super Profit Method.

First,

  • Finding the total profit of the last 5 years.

Total Profit = Profits of given number of years - losses, if any.

= 3,56,000 - 70,000 + 3,44,000 + 340,000 + 3,30,000

= Rs. 13,00,000

  • Now, finding the average profit:

 \tt{Avg. \:  \: profit = \frac{ Total \:  \:  Profits}{ Given   \: \: No. \:  \:  of \:  \:  years}}

  \tt=  \frac{13,00,000}{5}

 \tt = {Rs. \: 2,60,000}

  • Now, Normal profit = Capital employed × Normal rate of return

= 16,00,000 × 12%

= Rs. 1,92,000

  • Finding the Super Profit,

 { \small{\tt{Super \:  Profit = Average \:  Profit- Normal  \: profit}}}

= 2,60,000 - 1,92,000

= Rs. 68,000

  • Now, calculating the goodwill,

  \small\tt{Goodwill = Super \:  Profit  \times  No.  \: of  \: years' \:  purchase }

  \tt= 68,000  \times 2

 \tt =Rs.  \: 1,36,000

Thus, the value of goodwill (under Super Profit Method) is Rs. 1,36,000.

Answered by Atlas99
41

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★Total Profit = 3,30,000 + 3,40,000 + 3,44,000 - 70,000

+ 3,56,000 = 13,00,000.

★Average Profit = Total Profit / Given no. of years

= 13,00,000/5

= 2,60,000.

★Average capital employed = 16,00,000

★Normal rate of return = 12 percent

★Hence,Normal Profit =

1600000 \times \frac{12}{100}

= Rs 1,92,000.

★Therefore, Super Profit = Average Profit - Normal Profit

= 2,60,000 - 1,92,000

= Rs 68,000.

★Value of Good will = Super Profit × No. of years purchased

= 68,000 × 2

= Rs 1,36,000.

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