Scribd
Upload
2 views2 pages

Goodwill Assignment

The document contains a series of questions related to the calculation of goodwill based on average profits and super profits over various time periods. Each question provides a set of profits for specific years and asks for goodwill calculations at different multiples of the average profit. The calculations involve using the given profits to determine the average and applying the specified purchase years to find the goodwill value.

Uploaded by

pranavkesarkar45
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
2 views2 pages

Goodwill Assignment

The document contains a series of questions related to the calculation of goodwill based on average profits and super profits over various time periods. Each question provides a set of profits for specific years and asks for goodwill calculations at different multiples of the average profit. The calculations involve using the given profits to determine the average and applying the specified purchase years to find the goodwill value.

Uploaded by

pranavkesarkar45
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Q-1 The profits of a firm for the last 5 years are:

Years Profit (₹)


2021-22 10,000
2022-23 18,000
2023-24 14,000
2023-24 20,000
2024-25 18,000
Calculate goodwill at 3 years’ purchase of average profit
Q-2 Calculate goodwill at 2 years’ purchase of average profit
Profits for 5 years are as under:
Years Profit (₹)
2021-22 20,000
2022-23 25,000
2023-24 30,000
2023-24 (10,000)
2024-25 35,000
Q-3 Calculate goodwill at 3 years’ purchase of average profit
Profits for 5 years are as under:
Years Profit (₹)
2022-23 1,50,000
2023-24 2,00,000
2023-24 2,80,000
2024-25 3,60,000
2025-26 4,50,000
Q-4 Calculate goodwill at 5 years’ purchase of average profit
Profits for 4 years are as under:
Years Profit (₹)
2022-23 3,00,000
2023-24 3,20,000
2023-24 3,40,000
2024-25 3,60,000
Q-5 Capital Employed = ₹8,00,000 NRR = 12%
Average Profit of last 5 years is ₹1,40,000
Calculate goodwill is at 2 years’ purchase of super profit.
Q-6 Calculate goodwill at 3 years’ purchase of super profit.
Total assets are ₹9,20,000 and total liabilities are ₹2,70,000
NRR = 10%, profit of last 5 years are as under:
Years Profit (₹)
2022-23 1,00,000
2023-24 1,20,000
2023-24 1,80,000
2024-25 1,60,000
2025-26 1,40,000

You might also like