send mail to email@example.com mentioning your email id and mobileno registered with us! if details not recieved
Resend Opt after 60 Sec.
Please verify your mobile number
Subscribe to Notifications
Stay updated with the latest Current affairs and other important updates regarding video Lectures, Test Schedules, live sessions etc..
Refer & Earn
My Abhipedia Earning
Kindly Login to view your earning
Type your modal answer and submitt for approval
Q16.Calculate goodwill of a firm on the basis of three years' purchase of the Weighted Average Profit of the last four years. The profits of the last four financial years ended 31st March, were: 2016 − 25,000; 2017 − 27,000; 2018 − 46,900 and 2019 − 53,810. The weights assigned to each year are: 2016 − 1; 2017 − 2; 2018 − 3; 2019 − 4. You are supplied the following information:
i On 1st April, 2016, a major plant repair was undertaken for 10,000 which was charged to revenue. The said sum is to be capitalised for goodwill calculation subject to adjustment of depreciation of 10% on Reducing Balance Method.
ii The Closing Stock for the years ended 31st March, 2017 and 2018 were overvalued by 1,000 and 2,000 respectively.
iii To cover management cost an annual charge of 5,000 should be made for the purpose of goodwill valuation.
By: NIHARIKA WALIA ProfileResourcesReport error
Access to prime resources