From the following information, calculate value of goodwill of the firm by applying Capitalisation Method: Total Capital of the firm Rs. 16,00,000. Normal rate of return `10%`. Profit for the year Rs. 2,00,000.
Answered Feb 05, 2023
Correct Answer - Goodwill - Rs. 4,00,000.
VA by X=v+i-iv-vi-ix =300+20-5-100-50 =rs 165 lakh V.A. by `Y=viii+ii-iii-vii` `=250+15-10-80` =rs 175lakh
V.A. by `A=i+viii-ix-vii` `=40+20-10-20` =rs 30 lakh V.A. by `B=ii+vi-v-i-iii` =`80+20-15-40-10` =rs 35lakh
`GVA_(mp)` by X=(ii+iii)+(v-iv)-(i) `=(500+300)+(75-25)-400` =rs 450lakh.
Correct Answer - Goodwill - Rs. 1,68,000.
Correct Answer - Goodwill - Rs. 1,80,000.
Correct Answer - Goodwill - Rs. 61,000.
Correct Answer - Value of Goodwill - Rs. 2,50,000.
Correct Answer - Share Capital-Rs. 21,00,000.
Correct Answer - Capital Reserve-Rs. 2,000; Balance Sheet Total-Rs. 1,69,500.
Correct Answer - Cash Flow Operating Activites = ₹ 1,54,800; Net Profit before Tax = ₹ 1,30,000
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