The profits and losses for the last years are: 2001-02 Losses Rs. 10,000; 2002-03 Losses Rs....
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The profits and losses for the last years are: 2001-02 Losses Rs. 10,000; 2002-03 Losses Rs. 2,500; 2003-04 Profits Rs. 98,000 and 2004-05 Profits Rs. 76,000. The 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 oh the basis of two yearspurchase of super profits based on the average of four years. A Rs. 9,000 B C D Rs.8,750 Rs. 8,500 Rs. 8,250 The profits and losses for the last years are: 2001-02 Losses Rs. 10,000; 2002-03 Losses Rs. 2,500; 2003-04 Profits Rs. 98,000 and 2004-05 Profits Rs. 76,000. The 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 oh the basis of two yearspurchase of super profits based on the average of four years. A Rs. 9,000 B C D Rs.8,750 Rs. 8,500 Rs. 8,250
Expert Answer:
Answer rating: 100% (QA)
B Rs 8750 Steps to find 2 years purchase of super profits based on 4 years average 1 Find normal pro... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-1260481952
10th edition
Authors: J. David Spiceland, James Sepe , Mark Nelson, Wayne Thomas
Posted Date:
Students also viewed these accounting questions
-
The Work in Process Inventory account had a beginning balance of $16,200 on April 1. During April, the cost of direct materials used was $408,000 and direct labor cost assigned to production was...
-
A company showed the following information in its payroll register for the week ended March 16, 2015: 1. Prepare a general journal entry to record the payroll register information. 2. Prepare a...
-
A company showed the following information in its payroll register for the week ended March 16, 2015: 1. Prepare a general journal entry to record the payroll register information. 2. Prepare a...
-
The two key principles that form the foundation for an ethical sales presentation are OA) the approach and the close B) setting up the appointment and completing the application C) uncovering needs...
-
Does the perfect competitor always break even in the long run? Explain why or why not.
-
Anderson International Limited is evaluating a project in Erewhon. The project will create the following cash flows: Year __________________Cash Flow 0 ................................ -$690,000 1...
-
What is meant by a paradigm shift?
-
The Technically Techno Company has several patents for a variety of different Flash memory devices that are used in computers, cell phones, and a variety of other things. A competitor has recently...
-
The yield stress for mild steel is 207 MPa. A specimen has adiameter of 0.01 m and a length of 0.10 m. It is loaded in tensionto 1000 N and deflects 6.077 x 10^-6 m. (a) Compute whether the stress is...
-
Shelby Shelving is a small company that manufactures two types of shelves for grocery stores. Model S is the standard model; model Lx is a heavy-duty version. Shelves are manufactured in three major...
-
As part of an experiment carried out by the Ministry of Health, three weight reduction regimens are tested for their ability to help high school students to lose weight. Data presented below are the...
-
what ways can synergistic team dynamics be cultivated within organizational frameworks to augment operational efficacy and foster a culture of collaborative excellence? Explain
-
In what ways, if any, does U.S. society appear to be sophistic in orientation? Your task is to respond to this question in two paragraphs. To answer this question, you should consider defining...
-
How many times have you heard the phrase"our people are our most important asset"? What does it mean, and do you agree with it? Why or why not?
-
What measures can leaders implement to mitigate the potential pitfalls of over-delegation or micromanagement, striking a delicate balance between empowerment and control to avoid burnout,...
-
Functions hand kare inverse functions, and both are defined for all real numbers. Using this relationship, what is the value of each function composition? (hk)(3) = (koh)(-46) =
-
You buy a share of stock today for $ 66 and receive quarterly dividends of $ 4.70 at the end of each quarter for the next 2 years, and sell the stock for $ 67 at the end of two years. What is the...
-
(8%) Problem 6: A student attaches a f= 3.5 kHz oscillator to one end of a metal rail of length L = 25 m. The student turns on the oscillator and uses a piezoelectric gauge at the other end to...
-
On January 1, 2021, Tennessee Harvester Corporation issued debenture bonds that pay interest semiannually on June 30 and December 31. Portions of the bond amortization schedule appear below:...
-
On November 21, 2021, a fire at Hodge Companys warehouse caused severe damage to its entire inventory of Product Tex. Hodge estimates that all usable damaged goods can be sold for $12,000. The...
-
For each of the following note disclosures, indicate whether the disclosure would likely appear in (A) The summary of significant accounts policies (B) A separate note: (1) Depreciation method; (2)...
-
For installation and operation of a pipeline for an incompressible fluid, the total cost (in dollars per year) can be represented as follows: \[C=C_{1} D^{1.5} L+C_{2} m \Delta p / ho\] where...
-
Heavy fuel oil, initially semisolid at $15^{\circ} \mathrm{C}$ is to be heated and pumped through a $15 \mathrm{~cm}$ diameter (inside) pipe at the rate of $20000 \mathrm{~kg} / \mathrm{h}$. The pipe...
-
We are interested to produce $P$ in the reaction $A ightarrow P$ using a continuous reactor at $v=240$ liters/ hr with $C_{A_{0}}=3$ moles/liter. However, it is noticed that there is a second...
Study smarter with the SolutionInn App