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The profits for the last three years are 2002-03 Rs. 42,500; 2003-04 Profits Rs. 56,000 & 2004-05 Profits Rs. 68,000. The total assets of the firm are Rs. 11,52,500 and the total liabilities of the firm are Rs. 10,00,000 of which outsiders liabilities is Rs. 5,00,000. The rate of interest expected from capital invested is 10%. Calculate the value of goodwill on capitalization basis. 
  • a)
    Rs. 97,000
  • b)
    Rs. 97,250
  • c)
    Rs. 97,500
  • d)
    Rs. 97,750
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
The profits for the last three years are 2002-03 Rs. 42,500; 2003-04 P...
Avg profit = 55500 goodwill = super profit × 100/10
super profit = 55500- 65250 (actual profit = total assets - outside liability)
so goodwill = negative 9750 ×100/10 = negative 97500 so ans is c
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Community Answer
The profits for the last three years are 2002-03 Rs. 42,500; 2003-04 P...
97500
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The profits for the last three years are 2002-03 Rs. 42,500; 2003-04 Profits Rs. 56,000 & 2004-05 Profits Rs. 68,000. The total assets of the firm are Rs. 11,52,500 and the total liabilities of the firm are Rs. 10,00,000 of which outsiders liabilities is Rs. 5,00,000. The rate of interest expected from capital invested is 10%. Calculate the value of goodwill on capitalization basis.a)Rs. 97,000b)Rs. 97,250c)Rs. 97,500d)Rs. 97,750Correct answer is option 'C'. Can you explain this answer?
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The profits for the last three years are 2002-03 Rs. 42,500; 2003-04 Profits Rs. 56,000 & 2004-05 Profits Rs. 68,000. The total assets of the firm are Rs. 11,52,500 and the total liabilities of the firm are Rs. 10,00,000 of which outsiders liabilities is Rs. 5,00,000. The rate of interest expected from capital invested is 10%. Calculate the value of goodwill on capitalization basis.a)Rs. 97,000b)Rs. 97,250c)Rs. 97,500d)Rs. 97,750Correct answer is option 'C'. 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 for the last three years are 2002-03 Rs. 42,500; 2003-04 Profits Rs. 56,000 & 2004-05 Profits Rs. 68,000. The total assets of the firm are Rs. 11,52,500 and the total liabilities of the firm are Rs. 10,00,000 of which outsiders liabilities is Rs. 5,00,000. The rate of interest expected from capital invested is 10%. Calculate the value of goodwill on capitalization basis.a)Rs. 97,000b)Rs. 97,250c)Rs. 97,500d)Rs. 97,750Correct answer is option 'C'. 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 for the last three years are 2002-03 Rs. 42,500; 2003-04 Profits Rs. 56,000 & 2004-05 Profits Rs. 68,000. The total assets of the firm are Rs. 11,52,500 and the total liabilities of the firm are Rs. 10,00,000 of which outsiders liabilities is Rs. 5,00,000. The rate of interest expected from capital invested is 10%. Calculate the value of goodwill on capitalization basis.a)Rs. 97,000b)Rs. 97,250c)Rs. 97,500d)Rs. 97,750Correct answer is option 'C'. Can you explain this answer?.
Solutions for The profits for the last three years are 2002-03 Rs. 42,500; 2003-04 Profits Rs. 56,000 & 2004-05 Profits Rs. 68,000. The total assets of the firm are Rs. 11,52,500 and the total liabilities of the firm are Rs. 10,00,000 of which outsiders liabilities is Rs. 5,00,000. The rate of interest expected from capital invested is 10%. Calculate the value of goodwill on capitalization basis.a)Rs. 97,000b)Rs. 97,250c)Rs. 97,500d)Rs. 97,750Correct answer is option 'C'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA Foundation. Download more important topics, notes, lectures and mock test series for CA Foundation Exam by signing up for free.
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