Friday
April 18, 2014

Homework Help: Goodwill Valuation 2 - Accountancy

Posted by sniper on Tuesday, January 24, 2012 at 1:38am.

In case of Admission:

Given a balance sheet as at 31 Dec 2007. The new partner was admitted on 1 Jan 2007.

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

Gross Profits:
Year 2003 - 3,000,000 Weight - 1
Year 2004 - 1,800,000 Weight - 2
Year 2005 - 5,200,000 Weight - 3
Year 2006 - 6,300,000 Weight - 3
Year 2007 - 6,000,000 Weight - 2

Expenses:
2003 - 500,000
2004 - 800,000
2005 - 700,000
2006 - 800,000
2007 - 1,000,000

Req- Ascertain the amount of goodwill.

Note: Take care of admission date, balance sheet date and expenses...

Answer this Question

First Name:
School Subject:
Answer:

Related Questions

Goodwill valuation - Accountancy - In case of Admission: Given a balance sheet ...
math - An amusement park charges an admission fee of dollars per person. The ...
Finances in Healthcare - How does discounted cash flow valuation work? How does ...
Mergers and Acquisitions - Fair value determination of goodwill and calculating ...
statistics - The average admission charge for a movie is $6. if the distribution...
accounting - The goodwill relates to the purchase of net assets comprising an ...
Finance - You have been asked by management to explain the variances in cost ...
finance - I would like to enquire if you could help with the following ...
finance - I would like to enquire if you could help with the following ...
English - Native speakers - Hello! How do you call a person who checks if ...

Search
Members