29 :- From the following particulars, calculate the value of goodwill of a firm by Capitalisation of average profit method :-
(i) Profits of last five consecutive years ending 31st march are :-
2025 – Rs 54,000; 2024 – Rs 42,000; 2023 – Rs 39,000; 2022 – Rs 67,000 and 2021 – Rs 59,000
(ii) Capitalization rate 20%
(iii) Net assets of the firm Rs 2,00,000.
30 :- A business has earned an average profit of Rs 4,00,000 during the last few years and the normal rate of return in a similar business is 10%. Find the value of goodwill by:
(i) Capitalisation of Super Profit Method, and
(ii) Super Profit Method if the goodwill is valued at 3 years’ purchase of super profits.
Assets of the business were Rs 40,00,000 and its external liabilities Rs 7,20,000.
31 :- A firm earns a profit of Rs 5,00,000. The normal Rate of Return in a similar type of business is 10%. The value of total assets (excluding goodwill) and total outsider’s liabilities as on the date of goodwill are Rs 55,00,000 and Rs 14,00,000 respectively. Calculate the value of goodwill according to the Capitalisation of the Super Profit Method as well as the Capitalisation of the Average Profit Method.
32 :- On 1st April 2018, a firm had assets of Rs 1,00,000 excluding stock of Rs 20,000. The current liabilities were Rs 10,000 and the balance constituted partner’s capitals accounts. If the normal rate of return is 8% the goodwill of the firm is valued of Rs 60,000 at four years purchase of super profit, find the actual profits of the firm.
Question 1 to 3 (Average Profit Method)
Question 4 to 7 (Average Profit Method when Past Adjustments are made)
Question 8 to 9 (Weighted Average Profit Method)
Question 10 to 16 (Super Profit Method)
Question 17 to 21 (Calculation of Average Profit, Normal Rate of Return and Capital Employed)
Question 22 to 24 (Super Profit Method when Past Adjustments are Made)
Question 25 to 28 (Capitalisation Method)
Question 29 to 32 (Capitalisation Method)
Question 33 to 38 (Capitalisation of Super profit)