Meena purchased Simmi's business from 1st April, 2015. The Profits dis

1.	Meena purchased Simmi's business from 1st April, 2015. The Profits disclosed by Simmi's Business for the last three years were as follows : Year ending 31st March 2013 - Rs 40,000 (Including an Abnormal gain of Rs 5,000) Year ending 31st March 2014 - Rs 50,000 (After charging an Abnormal Loss of Rs 10,000) Year ending 31st March 2015 - Rs 45,000 (Excluding Rs 5,000 as annual Insurance Premium of firm's Property now Insured) Calculate the Value of firm's goodwill on the basis of 2 years Purchase of the average Profit for the last three years.
Answer» Meena purchased Simmi's business from 1st April, 2015. The Profits disclosed by Simmi's Business for the last three years were as follows : Year ending 31st March 2013 - Rs 40,000 (Including an Abnormal gain of Rs 5,000) Year ending 31st March 2014 - Rs 50,000 (After charging an Abnormal Loss of Rs 10,000) Year ending 31st March 2015 - Rs 45,000 (Excluding Rs 5,000 as annual Insurance Premium of firm's Property now Insured) Calculate the Value of firm's goodwill on the basis of 2 years Purchase of the average Profit for the last three years.

Meena purchased Simmi's business from 1st April, 2015. The Profits disclosed by Simmi's Business for the last three years were as follows : Year ending 31st March 2013 - Rs 40,000 (Including an Abnormal gain of Rs 5,000) Year ending 31st March 2014 - Rs 50,000 (After charging an Abnormal Loss of Rs 10,000) Year ending 31st March 2015 - Rs 45,000 (Excluding Rs 5,000 as annual Insurance Premium of firm's Property now Insured) Calculate the Value of firm's goodwill on the basis of 2 years Purchase of the average Profit for the last three years.

Answer»

Meena purchased Simmi's business from 1st April, 2015. The Profits disclosed by Simmi's Business for the last three years were as follows :

Year ending 31st March 2013 - Rs 40,000 (Including an Abnormal gain of Rs 5,000)

Year ending 31st March 2014 - Rs 50,000 (After charging an Abnormal Loss of Rs 10,000)

Year ending 31st March 2015 - Rs 45,000 (Excluding Rs 5,000 as annual Insurance Premium of firm's Property now Insured)

Calculate the Value of firm's goodwill on the basis of 2 years Purchase of the average Profit for the last three years.