# [Ans Q 4X purchased the business of Y from Ist April, 2019. For this purpose villis to be valucd at 100% of the average annual profits of the last four years. fits shown by Y's business for the last four years were: Jear ended 3ist March, 2016 Profit 1,00,000 (after debiting loss of stock by fire debi ited (R) could be partn lers R50,000) 2017 Loss 1,50,000 (includes voluntary retirement compensation paid 80,000) 2018 Profit 1,50,000 2019 Profit 2,00,000 Verification of books of accounts revealed the following : During the year ended 31st March, 2017,a machine got destoyed in aecident and 60,000 was written off as loss in Profit & Loss Account. () On lst uly 2017, Two Computers costing 40,000 each were purchased and wEe debited t Taveling Expenses Acot on which depreciation is to be With ate the charged (@ 100% pa. on Straight Line Method. Calculate the value of goodwill. Aus. Goodwill ?I,39,000.1 Hint. Profit for the year ended 31st March 2018 R2,24,000 and for 2019 RI,92,000. oril er S of

Dear Student
 Claculation of Goodwill Particulars Year Total 2015-16 2016-17 2017-18 2018-19 Profit / (Loss) 100,000 (150,000) 150,000 200,000 Add : Loss By Fire 50,000 - - - Add : Voluntry Retirement paid - 80,000 - - Add : Loss of Machinery - 60,000 - - Add : Purchase of Computer Debited to travelling expenses - - 80,000 - Less : Depreciation @ 10% SLM on Computer from july 17 - - (6,000) (8,000) Adjusted Profits 150,000 (10,000) 224,000 192,000 556,000 Average profit = Total adjusted profit / Number of years 139,000 Goodwill @ 100%  of Average Profits 139,000

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