Q:1 What is purchased goodwill and self generated goodwill?
Which out of
the two can be shown in the Balance sheet and why?
Q:2 If the super profit is negative what does it indicate?
Q:3 BTW is earning a profit of Rs 1,00,000 p.a. The rate of
return that is expected to be earned by other tikki vendors is 10 % of their
capital employed.
i)
Calculate the amount of capital that the other tikki
vendors have to employ in order to earn the profit as that of BTW.
ii)
If the capital employed by BTW is Rs 7,00,000,
calculate the goodwill of BTW.
Q:4 What is meant by Number of years of purchase?
Q:5 When does the need for valuation of internally generated
goodwill arises?
Q:6 What is the need for calculating goodwill by Weighted
average profit method?
Q:7 Profits for the year ended 2009 till 2013 were Rs 20,000;
30,000; 15,000; 10,000 and 40,000 respectively.
There was a phase of depression in the years 2011 & 2012
but still the firm was able to earn profits whereas most of the firms could not
earn. So it was decided to give double weightage to the profits of these years.
Calculate goodwill of the year when it is valued at 2 years
purchase of weighted average profits of 5 years.
Q:8 A purchased B’s business w.e.f Ist January, 2015. It was agreed that the
firm’s goodwill is to be valued at two years purchase of normal average profit
of the last three years. The profit of B’s business for the last three years
were:
2012- Rs 80,000
2013- Rs
1,00,000(after charging an abnormal loss of Rs 20,000)
2014- Rs 90,000(
excluding Rs 10,000 as insurance premium on firm’s property now to be insured)
Calculate the value of firm’s goodwill.
Q:9 A, B and C are partners sharing profits and losses
equally. They agree to admit D for equal share. For this purpose value of
goodwill is to be calculated on the basis of four years’ purchase of average
profit of last 5 years. These profits were :
2009- 30,000
2010- 70,000
2011- 1,00,000
2012- 1,40,000
2013- 1,20,000 (loss)
On Ist January, 2013, a moped costing Rs 20,000 was purchased
and debited to Travelling Expenses Account, on which depreciation is to be
charged @ 25%. Calculate value of goodwill after adjusting the above.
Q:10 On Ist April, 2014 an existing firm had assets of Rs
75,000 including cash of Rs 5,000. The
partners’ capital accounts showed a balance of Rs 60,000 and the reserves
constituted the rest. If the normal rate of return is 10 % and the goodwill of
the firm is valued at Rs 24,000 at 4 years purchase of super profits, find the
average profit.
No comments:
Post a Comment