What is the nature of goodwill?

What is the need for valuation of goodwill?

Explain the classification of goodwill.

How is goodwill calculated under the weighted average profit method?

Venu and Somu are carrying on a business of repairing electronic iterrrs. There are no other technicians for repairing electronic items in the locality. As the electric supply has a lot of fluctuations, the equipments get damaged. Therefore, both the partners themselves do the repairing work to the satisfaction of the customers. The firm donates 10% of its profits to a Charitable Hospital of the locality for the medical treatment of persons below poverty line. State the two factors affecting the goodwill of the firm discussed in the above para. Also identify any two values which the firm is trying to propagate.

Kalyan and Dilip are partners in a firm dealing in stationery items. The firm is well managed and enjoys the advantage of being cost effective. It buys stationery items at reasonable cost from Dilip's relative who is manufacture of stationery items. The firm's sale outlet is situated near a school. As a result, the firm is donating 10% of is profits to the nearby school for the education of the students of below poverty line. State any two factors affecting the value of goodwill of the firm. Also identify any two values which the firm is trying to propagate.

What are the nature of goodwill?

What is average profit method?

What is meant by simple average profit method?

Weighted average profit method-Short notes.

what is meant bv Annuity method of valuation Good will?

What is Annuity factor?

What is capitalization of super profit method?

The Average profit  expected to a firm (Rs. 68,000). Capital invested in the business to be Rs. 3,50,000 expected ratio of return 12% remunerution of partners is estimated to be Rs. 8,000 for the year. Your are required to find out the value  of goodwill on the basis of two years purchase of super profits.

On 1^st April,2017 firm had assets Rs. 75,000 including cash of Rs. 5,000.Partner's is Capital A/c shows Rs. 60,000 and reserves contibuted the rest.Normal rate of return 20% Goodwill of the firm Rs. 24,000 at 4 years purchase of super profits. Find out the average profit.