please;send the solutions;of this;question till today please

Dear Student

Calculation of Normal Profit
 
Particulars Profit for 2013
(Rs)
Profit for 2014
(Rs)
Profit for 2015
(Rs)
Profit 40,000 50,000 60,000
Less: Non Recurring Income   (4,000)  
Add: Abnormal Loss by fire 6,000    
Less: Remuneration (6,000) (6,000) (6,000)
Less: Income on Investment     (5,000)
       
Normal Profit 40,000 40,000 49,000
Weight 1 2 3
Weighted Profit 40,000 80,000 1,47,000
 
            
Weighted Average Profit = 40,000+80,000+1,47,0006= 44,500
      

Weighted Average Profit = Rs.44,500
Year of Purchase = 2

Goodwill = No. of year of purchase * Weighted Average Profit
                     2×44,500= 89,000

Goodwill = Rs.89,000

Note: The estimated insurance premium for coming years would be treated as an expense in those years respectively. Hence, no effect on current profits.

Regards
 

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