under which goodwill of a partnership firm is valued. III Short answer questions . State any six factors determining goodwill. .
How is goodwill calculated under the super profits method? . How is the value of goodwill calculated under the capitalisation method? .
Compute average profit from the following information. : ` , ; : ` , ; : ` , (Answer: Average profit: ` , ) . Calculate the value of goodwill at years purchase of average profit when average profit is ` , . (Answer: Goodwill: ` , ) IV Exercises Simple average profit method .
The following are the profits of a firm in the last five years: : ` , ; : ` , ; : ` , ; : ` , and : ` , Calculate the value of goodwill at years purchase of average profit of five years. (Answer: Average profit: ` , ; Goodwill: ` , ) . From the following information, calculate the value of goodwill on the basis of years purchase of average profits of last four years. Year Result Amount Profit , Profit , Loss , Profit , (Answer: Average profit: ` , ; Goodwill: ` , ) .
From the following information relating to a partnership firm, find out the value of its goodwill based on years purchase of average profits of the last years: (a) Profits of the years , , and are ` , , ` , , ` , and ` , respectively. (b) The business was looked after by a partner and his fair remuneration amounts to ` , per year. This amount was not considered in the calculation of the above profits. (Answer: Average profit: ` , ; Goodwill: ` , ) .
From the following information relating to Sridevi enterprises, calculate the value of goodwill on the basis of years purchase of the average profits of years. (a) Profits for the years ending 31st December , and were ` , , , ` , , and ` , , respectively. (b) A non-recurring income of `