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The profits and losses for the last years are 2001-02 Losses Rs. 10,000; 2002-03 Losses Rs. 2,500; 2003-04 Profits Rs. 98,000 & 2004-05 Profits Rs. 76,000. The average capital employed in the business is Rs. 2,00,000. The rate of interest expected form capital invested is 12%. The remuneration of partners is estimated to be Rs. 1,000 per month. Calculate the value of goodwill on the basis of four years purchase of super profit based on the annuity of four years. Take discounting rate as 10%. 
  • a)
    Rs. 13,500
  • b)
    Rs. 13568
  • c)
    Rs. 13668
  • d)
    Rs. 13,868.
Correct answer is option 'D'. Can you explain this answer?
Most Upvoted Answer
The profits and losses for the last years are 2001-02 Losses Rs. 10,00...
This question is totally wrong ....because here it is asked to give remuneration to the partners...but the main point is...here number of partners is not given...
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Community Answer
The profits and losses for the last years are 2001-02 Losses Rs. 10,00...
The correct answer will be (D)
goodwill = super profit * annuity value
4375 * 3.16982
= 13868 approx
annuity value = 1divided by (1 + i )
here i = discounting rate divided by 100
and u have to do this 4 times and then with your calculator press = ( is equal to ) 4 times..
I think it's complicated ..
check this
1) 0.909
3) 0.826
3) 0.751
4) 0.683
sum is approx 3.16982
I hope this will help you...
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The profits and losses for the last years are 2001-02 Losses Rs. 10,000; 2002-03 Losses Rs. 2,500; 2003-04 Profits Rs. 98,000 & 2004-05 Profits Rs. 76,000. The average capital employed in the business is Rs. 2,00,000. The rate of interest expected form capital invested is 12%. The remuneration of partners is estimated to be Rs. 1,000 per month. Calculate the value of goodwill on the basis of four years purchase of super profit based on the annuity of four years. Take discounting rate as 10%.a)Rs. 13,500b)Rs. 13568c)Rs. 13668d)Rs. 13,868.Correct answer is option 'D'. Can you explain this answer?
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The profits and losses for the last years are 2001-02 Losses Rs. 10,000; 2002-03 Losses Rs. 2,500; 2003-04 Profits Rs. 98,000 & 2004-05 Profits Rs. 76,000. The average capital employed in the business is Rs. 2,00,000. The rate of interest expected form capital invested is 12%. The remuneration of partners is estimated to be Rs. 1,000 per month. Calculate the value of goodwill on the basis of four years purchase of super profit based on the annuity of four years. Take discounting rate as 10%.a)Rs. 13,500b)Rs. 13568c)Rs. 13668d)Rs. 13,868.Correct answer is option 'D'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about The profits and losses for the last years are 2001-02 Losses Rs. 10,000; 2002-03 Losses Rs. 2,500; 2003-04 Profits Rs. 98,000 & 2004-05 Profits Rs. 76,000. The average capital employed in the business is Rs. 2,00,000. The rate of interest expected form capital invested is 12%. The remuneration of partners is estimated to be Rs. 1,000 per month. Calculate the value of goodwill on the basis of four years purchase of super profit based on the annuity of four years. Take discounting rate as 10%.a)Rs. 13,500b)Rs. 13568c)Rs. 13668d)Rs. 13,868.Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The profits and losses for the last years are 2001-02 Losses Rs. 10,000; 2002-03 Losses Rs. 2,500; 2003-04 Profits Rs. 98,000 & 2004-05 Profits Rs. 76,000. The average capital employed in the business is Rs. 2,00,000. The rate of interest expected form capital invested is 12%. The remuneration of partners is estimated to be Rs. 1,000 per month. Calculate the value of goodwill on the basis of four years purchase of super profit based on the annuity of four years. Take discounting rate as 10%.a)Rs. 13,500b)Rs. 13568c)Rs. 13668d)Rs. 13,868.Correct answer is option 'D'. Can you explain this answer?.
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