Admission of a ...

From the following information calculate the value of goodwill.
The adjusted forecast maintainable profit is Rs. $$40,000$$, Capital employed is Rs. $$2,00,000$$, Normal rate of return is $$15\%$$, Capitalization rate is $$20\%$$.

The net profits after tax of Z & Co. for the past $$5$$ years are as follows.

Year	Profit
$$2007-2008$$	$$2,56,000$$
$$2008-2009$$	$$2,64,000$$
$$2009-2010$$	$$3,76,000$$
$$2010-2011$$	$$4,86,000$$
$$2011-2012$$	$$5,30,500$$

The capital employed is Rs. $$16,00,000$$. Rate if normal return is $$15\%$$. Calculate the value of the goodwill on the basis of annuity method on super-profits basis, taking the present value of an annuity of Rs. $$1$$ for the $$4$$ years at $$15\%$$ as $$2.855$$.

The net profits after tax of NZ & Co. for the past $$3$$ years are as follows.

Year	Profit
$$2010-2011$$	$$20,000$$
$$2011-2012$$	$$2,61,000$$
$$2012-2013$$	$$3,12,000$$

Closing stock for $$2011-2012$$ and $$2012-2013$$ includes the defective items of Rs. $$22,000$$ and Rs. $$62,000$$ respectively which were considered as having no market value. Calculate average profit for goodwill.

The profits and losses for the last years are:

$$2011-2012$$ Losses Rs. $$10,000$$

$$2012-2013$$ Losses Rs. $$2,500$$

$$2013-2014$$ Profits Rs. $$98,000$$

$$2014-2015$$ Profits Rs. $$76,000$$

The average capital employed in the business is Rs. $$2,00,000$$. The rate of return expected from capital invested is $$12\%$$. The remuneration of partners is estimated to be Rs. $$1,000$$ per month not charged in the above losses/profits. Calculate the value of goodwill on the basis of two years purchase of super profits based on the average profit of $$4$$ years.

The profits and losses for the last years are:

Year	Profit/(loss)
$$2001-2002$$	$$(20,000)$$
$$2002-2003$$	$$(5,000)$$
$$2003-2004$$	$$1,96,000$$
$$2004-2005$$	$$1,52,000$$

The average capital employed in the business is Rs. $$4,00,000$$. The rate of interest expected from capital invested is $$12\%$$. The remuneration of partners is estimated to be Rs. $$2,000$$p.m. not charged in the above losses/profits. Calculate the value of goodwill on the basis of $$2$$ years purchase of super profits based on the average of four years.

A & B shares profit & losses equally. They admit C as an equal partner and goodwill was valued at Rs.$$30,000$$ (book value NIL). C is to bring in Rs.$$20,000$$ as his capital and the necessary cash towards his share of goodwill. Goodwill Account will not remain in the books. What will be the final effect of goodwill in the partners' capital account?

A & B are partners with capitals of $$Rs.14,000$$ and $$Rs.28,000$$ respectively and sharing profits equally. They admitted C as their third partner with $$1/4$$ profits of the firm on the payment of $$Rs.16,800$$. The amount of hidden goodwill is _________.

A & B shares profit & losses equally. They admit C as an equal partner and assets were revalued as follow: Goodwill at Rs. $$30,000$$(book value NIL). Stock at Rs. $$20,000$$(book value Rs. $$12,000$$); Machinery at Rs. $$60,000$$(book value Rs. $$55,000$$). C is to bring in Rs. $$20,000$$ as his capital and the necessary cash towards his share of Goodwill. Goodwill Account will not be shown in the books. Find the profit/loss on revaluation to be shared among A, B & C.

X & Y share profits & losses as $$1:2$$. They agree to admit Z (who is also in business on his own) as a third partner.
At the time of admission of Z goodwill was appearing in balance sheet at Rs.$$14,000$$ which was revalued at Rs.$$18,000$$. Z brings the following assets into the partnership:
Goodwill- Rs.$$6,000$$ Furniture-Rs.$$2,800$$, Stock-Rs.$$13,600$$
After admission of Z, goodwill will appear at _______ in the balance sheet.

A,B & C were equal partners with goodwill $$Rs.1,20,000$$ in the balance sheet and they agreed to take D as an equal partner on the term that he should bring $$Rs.1,60,000$$ as his capital and goodwill, his share of goodwill was evaluated at $$Rs.60,000$$ and the goodwill account is to be written off before admission. What will be the treatment for goodwill?