Scribd
Upload
4 views1 page

Assign 2 Valuation of Goodwill

The document is an assignment for Class XII Accountancy focusing on the valuation of goodwill. It includes various questions regarding the calculation of goodwill based on different methods and scenarios involving partnerships and profit analysis. Students are required to apply their knowledge of goodwill valuation using provided financial data.

Uploaded by

ilmaahmed2608
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
4 views1 page

Assign 2 Valuation of Goodwill

The document is an assignment for Class XII Accountancy focusing on the valuation of goodwill. It includes various questions regarding the calculation of goodwill based on different methods and scenarios involving partnerships and profit analysis. Students are required to apply their knowledge of goodwill valuation using provided financial data.

Uploaded by

ilmaahmed2608
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
You are on page 1/ 1

ACCOUNTANCY

Class – XII
ASSIGNMENT
Ch - 2 : Valuation of Goodwill

Q1) Deepak and Rohit are partners in a firm dealing in stationery items. The firm is well
managed and enjoys the advantage of being cost effective. It buys stationery items at
reasonable cost from Rohit’s relative who is manufacturer of stationery items. The firm’s
sale outlet is situated near a school. As a result, the firm has a steady demand of stationery
items and is earning good profits. The firm is donating 10% of its profits to the nearby school
for the education of the students of below poverty line. State any two factors affecting the
value of goodwill of the firm.
Q2) The following were the profits of the last three years.
Year ending Profits
31st March 2021 ₹ 4,00,000 ( including an abnormal gain of ₹ 50,000)
st
31 March 2022 ₹ 5,00,000 ( after charging an abnormal loss of ₹ 1,00,000 )
31st March 2023 ₹ 4,50,000 ( excluding ₹ 50,000 payable on the insurance of plant
& Machinery )
Calculate the value of firm’s goodwill on the basis of two years of purchase of average
profits for the last years.

Q3) The profits of a firm for the last three years is

Year 31.03.2021 31.03.2022 31.03.2023


Profits (₹) 60,000 90,000 30,000
Calculate goodwill based on three year’s purchase of weighted average profit with weights
1, 2 and 3 respectively to years ended 31st March 2021, 2022 and 2023.

Q4) The total capital of the firm of Sakshi, Mehak and Megha is ₹ 1,00,000 and the market
rate of interest is 15%.The net profit for the last 3 years were ₹ 30,000 , ₹ 36,000 and
₹ 42,000.Goodwill is to be valued at 2 years’ purchase of the last 3 years super profits.
Calculate the goodwill of the firm.

Q5) From the figures given below, calculate goodwill according to the capitalization of
Average profits method:
(i) Actual Average profits = ₹ 72,000
(ii) Normal rate of return = 10%
(iii) Assets = ₹ 9,70,000
(iv) Liabilities = ₹ 4,00,000

You might also like