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What us goodwill?

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What us goodwill?

Posted by Komal Panchal 5 years, 6 months ago

CBSE > Class 12 > Accountancy

1 answers

Yogita Ingle 5 years, 6 months ago

Goodwill is good name or the reputaion of the business, which is earned by a firm through the hardwork and honesty of its owners. If a firm renders good service to the customers, the customers who feel satisfied will come again and aain and the firm will be able to earn more profits in future.

Thus, goodwill is the value of the reputaion of a firm which enables it to earn higher profits in comparison to the normal profits earned by other firms in the same trade.

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The capital of the firm of anuj and benu is , 100000 and the market rate of interest is 15% . Annual salary to the partner is 60000 each. The profit for the last three years were , 300000 ,360000 , 420000. Goodwill of the firm is to be valued on the basis of two years purchase of last three years average super profit

Posted by Annu Sahani 1 year, 5 months ago

CBSE > Class 12 > Accountancy

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Ativ, Meha and Nupur were partners in a firm sharing profits and losses in the ratio of 5 : 3:2. On 31-03-2016 their Balance sheet was as under: Liabilities Amount (T) Assets Amount (R) | Trade Creditors 26,500 Bank 23.500 Debtors 1,00,000 Stock 50,000 Fixed Assets 40,000 Advertisement Expenditure 25,000 Employees Provident Fund Ativ's Capital Meha's Capital 30,000 55,000 1,20,000 Nupur's Capital 10,000 2,40,000 2,40,000 Ativ retired on 1-4-2016. For this purpose, the following adjustments were agreed upon: (i) Goodwill of the firm was to be valued at 2 years purchase of the average profits of 3 completed years preceding the date of retirement. The profit for previous years were: 2013-14 55,000; 2014-15 7 65,000; 2015-16 7 60,000.

Posted by Munni Lal 1 year, 5 months ago

CBSE > Class 12 > Accountancy

0 answers

Rao and Majumdar are partners sharing profits and losses in the ratio of 3: 2. Rao died on 31st December, 2020. The following was the Balance Sheet on that date: Payment to Executors in Instalments Liabilities Amount Assets Amount ed on 281 Creditors Reserve Rao's Capital Majumdar's Capital 24,000 Cash at Bank 15,000 Stock 18,000 40,000 Amount 18,000 25,000 Debtors Furniture 20,000 35,000 The share of Rao in firm's goodwill was agreed at 36,000. Assets and liabilities were valued reasonably. Assuming that 10,000 was paid immediately on January 1, 2021 and the balance was payable in three equal instalments on 31st December every year and interest was payable @ 12% per annum on unpaid balance. Prepare Rao's Executor's Account.

Posted by Palak Kumari 3 months, 2 weeks ago

CBSE > Class 12 > Accountancy

0 answers

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Posted by Palak Sharma 1 year, 4 months ago

CBSE > Class 12 > Accountancy

0 answers

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Posted by Srishti Arya 1 year, 2 months ago

CBSE > Class 12 > Accountancy

0 answers

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CBSE > Class 12 > Accountancy

0 answers

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Posted by Mohd Aman Mansoori 1 year, 4 months ago

CBSE > Class 12 > Accountancy

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CBSE > Class 12 > Accountancy

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CBSE > Class 12 > Accountancy

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Posted by Mahi . 1 year, 4 months ago

CBSE > Class 12 > Accountancy

0 answers

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