Question

The policeman
on the beat moved up the
avenue impressively. The impressiveness was
habitual and not for the show. phrase in own wprds​

Answer 1

Answer:

t

Explanation:

‘A’ agreed to purchase the business of ‘B’. Goodwill is valued at 3 years purchase of average

normal profits of the last 4 years. The profits for the last 4 years were:

2019 - `50,000, 2018 - `40,000, 2017 - `35,000 2016 - `25,000

On observation, we find that:

(a) The closing stock of 2018 was found overvalued by `10,000.

(b) It is also agreed by the management that an expense of `2,000 p.a. is to be

charged every year.

(c) On 1st July, 2017, a major repair was made in plant incurring `10,000 which was

charged to revenue. The said sum is to be capitalised subject to depreciation @

15% p.a. in straight line method.