On December 31, 2015, the Balance Sheet of P Ltd.reveals the following position: On December 31, 2015,
Question:
On December 31, 2015, the Balance Sheet of P Ltd.reveals the following position:On December 31, 2015, the fixed assets were independently valued at ₹ 3,50,000 and the goodwill at ₹ 50,000. Thenet profits for the three years were :
2013 ---- ₹ 51,600;
2014 ---- ₹ 52,000;
2015 ---- ₹ 51,650 of which 20% was placed under reserve, this proportion being considered reasonable in the industry in which the company is engaged and where a fair investment return may be taken at 10%. Compute the value of the company’s shares by
(a) The Net Assets Method;
(b) The Yield Value Method;
(c) The Earning Capacity Method.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Corporate Accounting As Per The Companies Act 2013 Including Rules 2014 And 2015
ISBN: 9789352605569
2nd Edition
Authors: M Hanif, A Mukherjee
Question Posted: