From the following information determine the value of goodwill of partnership firm of three years purchase. Year 2016-17 2012-13 2015-16 2013-14 2014-15 Profit 90000 45000 75000 50000 65000

From the following information determine the value of goodwill of part

1.	From the following information determine the value of goodwill of partnership firm of three years purchase. Year 2016-17 2012-13 2015-16 2013-14 2014-15 Profit 90000 45000 75000 50000 65000
Answer» (i) 3 Years' purchase of Average Profit method:Step 1: Calculation of Average Profit:Average Profit=[(200000-100000)+(180000-100000)+(160000-100000)]/3 = 80000Step 2: Calculation of Goodwill:Goodwill= 80000 * 3 = 240000 (II) 3 Years' purchase of Super Profit method:Step 1: Calculation of Capital Employed: Capital Employed= total assets- EXTERNAL liabilities = 700000-100000 = 600000Step 2: Calculation of NORMAL Profit:Normal Profit= 600000* [10/100] = 60000Step 3: Calculation of Average Profit:Average Profit=[(200000-100000)+(180000-100000)+(160000-100000)]/3 = 80000 Step 4: Calculation of Super Profit:Super Profit= 80000-60000 = 20000Step 5: Calculation of goodwill: Goodwill= 20000 * 3 = 60000(III) Capitalisation of Super Profit Method:Step 1: Calculation of Capital Employed: Capital Employed= total assets- external liabilities = 700000-100000 = 600000Step 2: Calculation of Normal Profit:Normal Profit= 600000* [10/100] = 60000Step 3: Calculation of Average Profit:Average Profit=[(200000-100000)+(180000-100000)+(160000-100000)]/3 = 80000 Step 4: Calculation of Super Profit:Super Profit= 80000-60000 = 20000Step 5: Calculation of goodwill: Goodwill= Super Profit * [100/Normal Rate of return] = 20000[100/10] = 200000(iv) Capitalisation of Average Profit method:Step 1: Calculation of Average Profit:Average Profit=[(200000-100000)+(180000-100000)+(160000-100000)]/3 = 80000 Step 2: Calculation of capitalised value of profit:Capitalised value of profit= 80000[100/10] = 800000Step 3: Calculation of Capital Employed: Capital Employed= total assets- external liabilities = 700000-100000 = 600000Step 4: Calculation of goodwill:Goodwill= 800000-600000 = 200000

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Tois question based GISTBasie Prodquet? Gust Sales SupplyАB 2200150800118.00 to 20018.001 300 Intre statoI istrustile12.00 lo1120 Istrestaleb.Tabb Trade Details (sales and purchaseJitems opening stat I purchased sold closingo0104803oa) find out belowgiveoQuestionsCGST ,SGST , LGST final balance?1. use different lable for saleand purchas drade.Neft profit from the trade?closing stock valuations ?

From the following information determine the value of goodwill of partnership firm of three years purchase. Year 2016-17 2012-13 2015-16 2013-14 2014-15 Profit 90000 45000 75000 50000 65000​

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From the following information determine the value of goodwill of partnership firm of three years purchase. Year 2016-17 2012-13 2015-16 2013-14 2014-15 Profit 90000 45000 75000 50000 65000