Tuesday
September 16, 2014

Homework Help: Goodwill valuation - Accountancy

Posted by sniper on Tuesday, January 24, 2012 at 1:29am.

In case of Admission:

Given a balance sheet as at 31 Dec 2008. The new partner was admitted on 1 Jan 2009.

Goodwill was agreed at 2 years purchase and was to be valued in accorfance to the weighted average gross profit method for the previous four years starting from this year.

Year 2005 - 6,000,000 Weight - 1
Year 2006 - 3,600,000 Weight - 3
Year 2007 - 8,400,000 Weight - 2
Year 2008 - 12,000,000 Weight - 3
Year 2009 - 10,000,000 Weight - 2

Req- Ascertain the amount of goodwill.

Question: will the average product be taken from 2005 - 2008 (4 years) or 2007 - 2009 (4 years)...the b/sheet date is 2008, admission date is 2009.

Answer this Question

First Name:
School Subject:
Answer:

Related Questions

Goodwill Valuation 2 - Accountancy - In case of Admission: Given a balance sheet...
Mergers and Acquisitions - Fair value determination of goodwill and calculating ...
Math - John invests $100,000 in a newly issued 3 year bond. The bond is issued ...
accounting - The goodwill relates to the purchase of net assets comprising an ...
to record admission of new partner into partnershi - I was just wondering if ...
Accounting - Please Help. I can't get the balance sheet to balance out at at. I ...
Economics - Sometimes, a bidder on a work contract may bid lower than what would...
Economics - Sometimes, a bidder on a work contract may bid lower than what would...
accounting - I need help in preparing the following: 1) record the 2008 ...
Math - This table gives the number of AIDS cases reported in men in Los Angeles ...

Search
Members