Question

V
* 1. The following particulars are available in respect of the business carried on by Bankay
Ltd.:
₹
(a) Profits earned : 2012-13
50,000
2013-14
48,000
2014-15
62,000
(b) Profit for 2013-14 is reduced by 5,000 due to stock destroyed by fire and profit of
2012-13 included a non-recurring income of 4,000.
(c) Profit for 2014-15 includes 2,000 income from investment.
(d) The stock is not insured and it is thought prudent to insure the stock in future. The
insurance premium is estimated at 500 p.a.
(e) Fair remuneration to the proprietor (not taken in the calculation of profits) is
10,000 p.a.
You are required to compute the value of goodwill on the basis of 2 years' purchase of
the average profits of the last three years.
bis​

Answer 1

Answer:

70000

Explanation:

10000

20000

39999

50000

yes

Answer 2

Explanation:

Calculation of future maintainable profit =Adjusted profit /No of years

=37500+42500+49500/4

=43167

Calculation of goodwill=future maintainable profit*no of years

=43167*2

=86334