InterviewSolution
Saved Bookmarks
| 1. |
The capital employed as shown by the books of ABC Ltd is Rs 5,00,00,000. And the normal rate of return is 10 %. Goodwill is to be calculated on the basis of 3 years purchase of super profits of the last four years. Profits for the last four years are: Year Profit/Loss (Rs) 2005 - Rs. 1,00,00,000 2006 - Rs. 1,22,50,000 2007 - Rs. 74,50,000 2008 - Rs. 54,00,000 Calculate goodwill. |
|
Answer» The capital employed as shown by the books of ABC Ltd is Rs 5,00,00,000. And the normal rate of return is 10 %. Goodwill is to be calculated on the basis of 3 years purchase of super profits of the last four years. Profits for the last four years are: Year Profit/Loss (Rs) 2005 - Rs. 1,00,00,000 2006 - Rs. 1,22,50,000 2007 - Rs. 74,50,000 2008 - Rs. 54,00,000 Calculate goodwill. |
|