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1.99 (b). The balance sheet of Saraswati Co. Ltd. disclosed the following position as on 31st December 1998. Liabilities Share Capital 6,000 equity shares of
1.99 (b). The balance sheet of Saraswati Co. Ltd. disclosed the following position as on 31st December 1998. Liabilities Share Capital 6,000 equity shares of Rs.100 each Profit & Loss A/c General Reserve 6% Debentures Sundry Creditors Workmen's Savings bank A/ Rs 6,00,000 Docu 75,000 2,25,000 4,50,000 1,50,000 3,00,000 18,00,000 Assets Goodwill Investments Stock Sundry Debtors Cash at Bank Rs 1,65,000 5,25,000 6,60,000 3,90,000 60,000 18,00,000 The profits for the past five years were: 1994-Rs. 30,000; 1995 Rs. 70,000; 1996 Rs. 50,000; 1997 Rs. 55,000 and 1998- Rs.95,000. ii) The market value of investments was Rs. 3,30,000. iii) Goodwill is to be valued at three years purchase of the average annual profits for the last five years. Find the value of goodwill
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