Tangible Assets of the firm are ₹ 14,00,000 and outside liabilities are ₹ 4,00,000. Profit of the firm is ₹ 1,50,000 and normal rate of return is 10%. The amount of Capital Employed will be:
The Average profit earned by a firm is ₹ 75,000 which includes undervaluation of stock of ₹ 5,000 on average basis. The capital invested in the business is ₹ 7,00,000 and the normal rate of return is 7%.
Calculate goodwill of the firm on the basis of 5 times the super profit.
Average profits of a firm during the last few years are ₹ 80,000 and the normal rate of return in a similar business is 10%. The goodwill of the firm is ₹ 1,00,000 at 4 years purchase of super profit.
Find the capital employed by the firm.
Geeta, Seeta and Meeta were partners a firm sharing profits and losses in the ratio of 2 : 2 : 1. On 31st March, 2022, Meeta retired from the firm. On Meeta's retirement the goodwill of the firm was valued at 3 years' purchase of average profits of the last 5 years. The profits of the last 5 years were:
Year | Profit |
2017 - 2018 | 70,000 |
2018 - 2019 | 80,000 |
2019 - 2020 | 90,000 |
2020 - 2021 | 1,00,000 |
2021 - 2022 | 1,10,000 |
During the year 2018-19 there was a loss of ₹ 20,000 due to fire which was not accounted for while calculating the profit.
Calculate the value of goodwill.
Pass the necessary journal entries for the treatment of goodwill.
Tangible Assets of the firm are ₹ 14,00,000 and outside liabilities are ₹ 4,00,000. Profit of the firm is ₹ 1,50,000 and normal rate of return is 10%. The amount of capital employed will be :
J and K are partners in a firm. Their capitals are : J : Rs 3,00,000 and K : Rs 2,00,000. During the year ended 31st March, 2010 the firm earned a profit of Rs 1,50,000. Assuming that the normal rate of return is 20%, calculate the value of goodwill of the firm:
By Capitalisation Method
By Super Profit Method if the goodwill is valued at 2 years' purchase of super profit.
Capital of the firm of Sharma and Verma is ₹ 2,00,000 and the market rate of interest is 15%. Annual salary to partners is ₹ 12,000 each. The profits for the last three years were ₹ 60,000; ₹ 72,000 and ₹ 84,000. Goodwill is to be valued at 2 years' purchase of last 3 years' average super profit.
Calculate goodwill of the firm.
Keshav and Karan were partners in a firm sharing profits equally. The capitalised value of average profits of the firm was ₹ 18,00,000. Assets of the firm were ₹ 20,00,000 (excluding goodwill) and Liabilities were ₹ 5,00,000. The value of goodwill of the firm by capitalisation of average profits method will be:
Name any four factors which affect the Goodwill of a partnership firm.
How does location affect the Goodwill of a business?