Purchase consideration of a business is determined at Rs 3,50,000. Ass

1.	Purchase consideration of a business is determined at Rs 3,50,000. Assets were Rs 4,00,000 and liabilities worth Rs 80,000. Find the value of goodwill of the firm.
Answer» Net Asset = Assets – Liabilities = 4,00,000 – 80,000 = Rs 3,20,000 Goodwill = Purchase Consideration – Net Assets = 3,50,000 – 3,20,000 = Rs 30,000

Purchase consideration of a business is determined at Rs 3,50,000. Assets were Rs 4,00,000 and liabilities worth Rs 80,000. Find the value of goodwill of the firm.

Answer»

Net Asset = Assets – Liabilities

= 4,00,000 – 80,000

= Rs 3,20,000 Goodwill

= Purchase Consideration – Net Assets

= 3,50,000 – 3,20,000

= Rs 30,000