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please solve on urgent basis 6. Calculate the value of goodwill at 3 years purchases of super profits, if any, earned by the company in
please solve on urgent basis
6. Calculate the value of goodwill at 3 years purchases of super profits, if any, earned by the company in the previous 4 completed year's balance sheet 31 March 2022 Rupees 310 1850 3670 1015 32 600 (c) liabilities Rupees Assets Share capital 5000 Goodwill Capital reserve 260 Land and building General reserve 2543 Machinery Profit and loss account 477 Furniture Creditors 568 Patents Provisions for taxation 22 9% non-trade investments Proposed dividends 750 Stock (2020-21) Debtors Bank Preliminary expenses 9620 The profits before tax for the last 4 years is as follows: 873 614 546 20 9620 Years 2018 2019 PBT in lakhs of rupees 3190 2500 3108 2900 2020 2021 The rate of income tax for the accounting year 2017-18 was 40%. Thereafter it has been 38% for all the years so far. But for the year 2021-2022 it will be 22%. In the accounting year 2017-18, the company earned an extra ordinary income of rupees 1 crore due to special foreign contract. In august 2019 there was an earth quake due to which company lost property worth rupees 50 lakhs and insurance policy does not cover this loss. 9% non-trade investments were purchased at par by the company on 1 April 2019. The normal rate of return for the industry in which the company operates is 18%. shareholders has approved an additional remuneration to directors of rupees 45 lakhs every year beginning from the accounting year 2021-22 14Step by Step Solution
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