Monday 21 May 2012

PARTNERSHIP - Basic Concept- Home work

1.   From the following information given below compute the value of goodwill at 3 years purchase of 5 years       average profits

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.

                 

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