2011-2012 Losses Rs. 10, 000, The Profits & losses for the last years are: 2012-2013 Losses...

 

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2011-2012 Losses Rs. 10, 000, The Profits & losses for the last years are: 2012-2013 Losses Rs. 2,500 2013-2014 Profits Rs. 98, 000 2014-2015 Profits Rs. 76,000 average capital employed in the business is Rs. 2, 00, 000. The rate of interest expected from capital invested is 12%. The remuneration of partners is estimated to be Rs. 1,000 per month. Calculate the value of goodwill on the basis of four years purchase of super profits based on the annuity of the four years. Take discounting rate as 10%. 2011-2012 Losses Rs. 10, 000, The Profits & losses for the last years are: 2012-2013 Losses Rs. 2,500 2013-2014 Profits Rs. 98, 000 2014-2015 Profits Rs. 76,000 average capital employed in the business is Rs. 2, 00, 000. The rate of interest expected from capital invested is 12%. The remuneration of partners is estimated to be Rs. 1,000 per month. Calculate the value of goodwill on the basis of four years purchase of super profits based on the annuity of the four years. Take discounting rate as 10%.

Answer rating: 100% (QA)

Total of Profits of last 4 years Average Profit Adjusted Average Profit Norm... View the full answer