were: Find the goodwill of a firm on the basis of two years' purchase of the weighted average profit of the last 4 years. The profits of the last 4 years 2013 - 20,000, 2014 - ? 30,000, 2015 – 7 25,000, 2016 - 38,000 The weights assigned were 1, 2, 3 and 4 respectively. On scrutiny, it was found that: (a) On 1st January, 2015 heavy repair made on plant amounting to *8,000 was charged to revenue account. The said sum is agreed to be capitalised for goodwill computation. This is subject to 10% depreciation p.a. on straight line method. (b) The closing stock of 2014 and 2016 were over valued by ? 1,000 and 2,000 respectively. (c) To cover the management cost, an annual charge of 3,000 should be made for goodwill valuation [Ans. 57,680]
Answers
Answered by
0
Answer:
were: Find the goodwill of a firm on the basis of two years' purchase of the weighted average profit of the last 4 years. The profits of the last 4 years 2013 - 20,000, 2014 - ? 30,000, 2015 – 7
Explanation:
said sum is agreed to be capitalised for goodwill computation. This is subject to 10% depreciation p.a. on straight line method. (b) The closing stock of 2014 and 2016 were over valued by ? 1,000 and 2,000 respectively. (c) To cover the management cost, an annual charge of 3,000 should be made for goodwill valuation [Ans. 57,680]
Similar questions