How does the market situation affect the value of goodwill of a firm? Post category:Accountancy Reading time:1 mins read SOLUTION A firm which produces goods having a stable demand will be able to earn more profits and hence will have more goodwill. Please Share This Share this content Opens in a new window X Opens in a new window Facebook Opens in a new window Pinterest Opens in a new window LinkedIn Opens in a new window Viber Opens in a new window VK Opens in a new window Reddit Opens in a new window Tumblr Opens in a new window Viadeo Opens in a new window WhatsApp Read more articles Previous PostHow does the market situation affect the value of goodwill of a firm? Next PostDistinguish between average profits and super profits. You Might Also Like Where would you transfer the balance left in the share forfeited account after the reissue of such shares? September 28, 2022 Lal and Pal were partners in a firm sharing profits in the ratio of 3 : 7. On 1st April, 2015 their firm was dissolved. After transferring assets (other than cash) and outsider’s liabilities to Realisation Account, you are given the following information: (a) A creditor of Rs. 3,60,000 accepted machineries valued at Rs. 5,00,000 and paid to the firm Rs. 1,40,000. (b) A second creditor for Rs. 50,000 accepted stock at Rs. 45,000 in full settlement of his claim. (c) A third creditor amounting to Rs. 90,000 accepted Rs. 45,000 in cash and investments worth Rs. 43,000 in full settlement of his claim. (d) Loss on dissolution was Rs. 15,000. Pass necessary Journal entries for the above transactions in the books of firm assuming that all payments were made by cheque. July 25, 2022 Enumerate two main steps involved in valuing the goodwill according to super profit method. September 26, 2022 Leave a Reply Cancel replyYou must be logged in to post a comment.
Where would you transfer the balance left in the share forfeited account after the reissue of such shares? September 28, 2022
Lal and Pal were partners in a firm sharing profits in the ratio of 3 : 7. On 1st April, 2015 their firm was dissolved. After transferring assets (other than cash) and outsider’s liabilities to Realisation Account, you are given the following information: (a) A creditor of Rs. 3,60,000 accepted machineries valued at Rs. 5,00,000 and paid to the firm Rs. 1,40,000. (b) A second creditor for Rs. 50,000 accepted stock at Rs. 45,000 in full settlement of his claim. (c) A third creditor amounting to Rs. 90,000 accepted Rs. 45,000 in cash and investments worth Rs. 43,000 in full settlement of his claim. (d) Loss on dissolution was Rs. 15,000. Pass necessary Journal entries for the above transactions in the books of firm assuming that all payments were made by cheque. July 25, 2022
Enumerate two main steps involved in valuing the goodwill according to super profit method. September 26, 2022