1.

From the following information, compute the value of goodwill as per annuity method:Average Capital Employed : Rs. 4,00,000 (ii) Normal rate of profit: 10%(iii) Profit for 2010 – 11 Rs. 62000, 2011-12 Rs. 59,000 and for 2012-13 Rs. 66000(iv) Profit for 2011-12 has been arrived at after writing off abnormal loss at Rs. 2000whereas the profit for 2012-13 includes a non- recurring income of Rs. 3000.Goodwill is to be calculated on the basis of annuity of three years purchased of super profit.​

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