1. From the following information given below compute the value of goodwill at 3 years purchase of 5 years average profits
2. Calculate the value of goodwill as on 1st january, 2005 on the basis of three years purchases of the average
profits of the last five years profits. The profits and losses for the years were:
Year : 2000 2001 2002 2003 2004
Profit : 40,000(Loss) 92,000 55,000 70,000 90,000
3. The profit of a firm for the last 5 years ending 31st March were as follows:
Year : 2000 2001 2002 2003 2004
Profits: 12,000 15,000 25,000 30,000 23,000
Calculate the value of goodwill on the basis of 3 years purchase of weighted average profits. The appropriate weight for the last 5 years were 1,2,3,4 and 5 respectively.
4. Profits of the firm for the last 5 years were:
Year: 2004 2003 2002 2001 2000
Profit: 30,000 28,000 25,000 24,000 18,000
The capital employed in the firm is Rs.4,00,000. You are required to compute the value of goodwill at 2 years purchase of super profit, assuming that the normal rate of return on capital employed is 5%.
5. A firm has mad an average profit of Rs.30,000 during the past few years. The normal rate of return in similar type of business is 15%. The firm has a net tangible asset of Rs. 1,60,000. Find out the value of goodwill by capitalisation method.
Year : 2000 2001 2002 2003
Profit : 20,000 30,000 60,000 90,000
The capital employed by the firm is Rs.5,00,000 and normal rate of return is 8%. Calculate goodwill of the firm under capitalization of super profit method.
7. Aneesh is a partner in a firm and his withdrawals for the year ended 31st december 2002 are as follows:
January 31 - 3,600
March 31 - 2,400
June 30 - 4,800
August 31 - 1,200
October 30 - 6,000
Year: 1999 2000 2001 2002 2003
Profit (Rs) 20,000 21,000 22,000 25,000 30,000
2. Calculate the value of goodwill as on 1st january, 2005 on the basis of three years purchases of the average
profits of the last five years profits. The profits and losses for the years were:
Year : 2000 2001 2002 2003 2004
Profit : 40,000(Loss) 92,000 55,000 70,000 90,000
3. The profit of a firm for the last 5 years ending 31st March were as follows:
Year : 2000 2001 2002 2003 2004
Profits: 12,000 15,000 25,000 30,000 23,000
Calculate the value of goodwill on the basis of 3 years purchase of weighted average profits. The appropriate weight for the last 5 years were 1,2,3,4 and 5 respectively.
4. Profits of the firm for the last 5 years were:
Year: 2004 2003 2002 2001 2000
Profit: 30,000 28,000 25,000 24,000 18,000
The capital employed in the firm is Rs.4,00,000. You are required to compute the value of goodwill at 2 years purchase of super profit, assuming that the normal rate of return on capital employed is 5%.
5. A firm has mad an average profit of Rs.30,000 during the past few years. The normal rate of return in similar type of business is 15%. The firm has a net tangible asset of Rs. 1,60,000. Find out the value of goodwill by capitalisation method.
6. The following relate to the profit made by a firm for the last four years.
Year : 2000 2001 2002 2003
Profit : 20,000 30,000 60,000 90,000
The capital employed by the firm is Rs.5,00,000 and normal rate of return is 8%. Calculate goodwill of the firm under capitalization of super profit method.
7. Aneesh is a partner in a firm and his withdrawals for the year ended 31st december 2002 are as follows:
January 31 - 3,600
March 31 - 2,400
June 30 - 4,800
August 31 - 1,200
October 30 - 6,000
Charge interest on drawings at the rate of 5% per annum using product method.
