Question

SEM-IV)
41. Following is the Balance Sheet of M/s. Kothari Ltd. as on 31st December, 2014
Balance Sheet as on 31st December, 2014
Amount
Assers
Amount
Share Capital
Creditors
1.02.000 Land and Building
19.020) Plant
Furniture
Stock
Bank
Debtors
18000
27 000
15.000
13.425
37.995
9.500
1.21.020
1.21.020
Following were the net profits for the last 3 years:
Year
Profit 5)
15,240
17.535
20.775
You are required to value the goodwill of the above business at 2 years purchase of super profe
taking into account the fact that the standard rate of return on capital employed in such business
is 10%
(a) Negative
(b) * 11,496
(c) 15,300
(d) 7,692​

Answer 1

Answer:

Balance Sheet as on 31st December, 2014. Amount Assers Amount Share Capital Creditors 1.02.000 Land and Building 19.020) Plant Furniture Stock Bank Debtors