0
Want this question answered?
Be notified when an answer is posted
Add your answer:
Earn +20 pts
How do you find answer for 100ml 100 rs so 1000ml equals Rs?
Two ways - which are closely related. Method 1: 1000 ml is 10 times as big as 100 ml and so will be 10 times as much. Since the first is 100 rs then the second is ten times as much, which is 1000 rs. Method 2: 100 ml for 100 rs is equivalent to 1 rs per 1 ml or 1 rs per ml. At that rate, 1000 ml will be 1000 rs.
Which axiom justifies the statement RS equals RS?
Reflexive
Write Rs.40100724 in thousands?
Rs 40101 thousand
What is a point M online RS?
Point M is the midpoint on line RS.
How much would you have in rs if you have 6500 dollars?
How much would you have in rs if you have 6500 dollars?
When do you follow the four Rs?
When driving, when should you follow the four Rs
What is rs-hplc?
"RS-HPLC method" means "Related Substance HPLC Method".
If pq and rs intersect to from four right angles what is true?
Is PQ |_ RS
How can I calculate good will of a company?
Prof. Dicksee has defined goodwill as " When a man pays for goodwill, he pays for something which places him in the position of being able to earn more than he would be able to do by his own unaided efforts." According to J. O. Magee " The capacity of a business to earn profits in future is basically what is meant by the term goodwill." According to Lord Lindley " The term goodwill is generally used to denote benefit arising from connections and reputation." Lord Eldon has defined goodwill as " Goodwill is nothing more than the probability, that the old customers will resort to the old place." In the words of Lord Macnaghten, " Goodwill is a thing very easy to describe, very difficult to define. It is the benefit and advantage of the good name, reputation and connections of a business. It is the attractive force, which brings in customers. It is one thing which distinguishes an old established business from a new business at its first start." In the words of Dr. Canning, "Goodwill is the present value of a firm's anticipated excess earnings."Methods of Valuation of GoodwillThe following are the methods of valuation of goodwill of a firm: - ## Average Profit Method# Weighted Average Profit Method# Super Profit Method# Capitalization of Average Profit Method# Capitalization of Super Profit Method# Present Value of Super ProfitsMethod 1. Average Profit Method: Under this method goodwill is calculated on the basis of the average profit of previous years. The average profit is multiplied by the number of year's purchase. Goodwill = Average Profit x Number of Years Purchase Example: Calculate goodwill at twice the average profits of last four years' profits. The profits of the last four years were: # # Rs. 27,000 # Rs. 39,000 # Rs. 16,000 (Loss) # Rs. 40,000 Solution: Total Profit for last four years = Rs. 27,000+ Rs. 39,000-Rs. 16,000+Rs. 40,000 = Rs. 80,000 Average Profit = Rs. 80,000/4 = Rs. 20,000.Goodwill = Rs. 20,000 x 2 = Rs. 40,000.Method 2. Weighted Average Profit Method: This method is a modified version of the average profit method. Under this method the respective number of weights i.e. 1,2,3,4 multiplies profit of every year, in order to find out value product and the total of products is then divided by the total of weights in order to ascertain the weighted average profits. Goodwill = Weighted Average Profits x No. of years Purchase Weighted Average Profit = Total of Products of Profits/ Total of Weights Example: Calculate goodwill at twice the weighted average profits of last four years' profits. The profits of the last four years were:2001. Rs. 37,0002002. Rs. 29,0002003. Rs. 26,0002004. Rs. 40,000Solution:Years Profits Rs. Weight ProductRs.2001 37,000 1 37,0002002 29,000 2 58,0002003 26,000 3 78,0002004 40,000 4 160,000Total 10 333,000 Weighted Average Profit = Rs. 333,000/10 = Rs. 33,300 Goodwill = Rs. 33,300 x 2 = Rs. 66,600Method 3. Super Profit Method: When the actual profit is more than the expected profit or normal profit of a firm, it is called 'Super Profit.' Under this method goodwill is to be calculate of on the following manner: Goodwill = Super Profit x Number of Years Purchase Example: The books of a business showed that the capital employed on January 1, 2001 was Rs. 4,50,000 and the profits for the last five years were as follows: 2001-Rs. 40,000; 2002 -Rs. 50,000; 2003 - Rs. 60,000; 2004 -Rs. 70,000 and 2005 -Rs. 80,000. You are required to find out the value of goodwill, based on three years' purchase of the super profit of the business given that the normal rate of return is 10%.Solution: Total Profit of last five years = Rs. 40,000 + Rs. 50,000 + Rs. 60,000 + Rs. 70,000 + Rs. 80,000 = Rs. 300,000Average Profit = Rs. 300,000/5 =Rs. 60,000 Normal Profit = Rs. 450,000 x 10/100 = Rs. 45,000 Super Profit = Actual/Average Profit - Normal Profit Super Profit = Rs. 60,000 - Rs. 45,000 = Rs. 15,000 Goodwill = Rs. 15,000 x 3 = Rs. 45,000.Method 4. Capitalization of Average Profit Method: Under this method goodwill is difference between the total Capitalized value of the firm and the net assets of the firm. Goodwill = Capitalized Value the firm - Net Assets Capitalized Value of the firm = Average Profit x 100/ Normal Rate of Return Net Assets = Total Assets - External Liabilities Example: A firm earns Rs. 65,000 as its average profits. The usual rate of earning is 10%. The total assets of the firm amounted to Rs. 680,000 and liabilities are Rs. 180,000. Calculate the value of goodwill.Solution : Total Capitalized value of the firm = Rs. 65,000 x 100/10 = Rs. 650,000 Net Assets = Rs. 680,000 - Rs. 180,000 = Rs. 500,000 Goodwill = Total Capitalized value of the firm - Net Assets Goodwill = Rs. 650,000 - Rs. 500,000 = Rs. 150,000.Method 5. Capitalization of Super Profit Method: # # Calculate Capitalized value of the firm # Calculate required profit on capital employed by using the following formula: Normal Profit = Capital Employed x Required Rate of Return/100 # # Calculate average profit # Calculate super profit Goodwill = Super Profit x 100/Normal Rate of Return Example: Verma Brothers earn a profit of Rs. 90,000 with a capital of Rs. 4,00,000. The normal rate of return in the business is 15%. Use Capitalization of super profit method to value the goodwill. Solution: Normal Profit = Rs. 4,00,000 x 15/100 = Rs. 60,000 Super Profit = Rs. 90,000 - Rs. 60,000 = Rs. 30,000 Goodwill = Super Profit x 100/Normal Rate of Return = Rs. 30,000 x 100/15 = Rs. 200,000 Method 6. Present Value of Super Profit: Under this method, goodwill is estimated as the present value of the future super profits. The following steps are taken: # # Calculate the future super profits for next years # Choose the required rate of return # Calculate present value factors # Multiply present value factors with future super profits # The sum of product of present value factors and super profits is the value of goodwill. Example: A firm has the forecasted profits for the coming 4 years as follows:Years Profits Rs.1 80,0002 100,0003 90,0004 120,000 The total assets of the firm are Rs. 900,000 and outside liabilities are Rs. 300,000. The present value factors at 10% are as follows:Years Present Value Factor1 .92792 .80293 .70564 .6978 Calculate the Value of goodwill. Solution: Net Assets = Total Assets - Liabilities = Rs. 900,000 - Rs. 300,000 = Rs. 600,000Normal Profit = 10/100 x Rs. 600,000 = Rs. 60,000Years 1234Profits (Rs.) 80,000100,00090,000120,000Normal Profit 60,00060,00060,00060,000Super Profit 20,00040,00030,00060,000Present Value Factor .9279.8029.7056.6978Present Value of Super Profit 18,55832,11621,16841,868Goodwill = Rs. 18,558 + Rs. 32,116 + Rs. 21,168 + Rs. 41,868 = Rs. 113,710.
What is the name of the strategy that if we practice it block by block mile by mile keeps us mentally alert while driving?
intersection Managerment
How do you find answer for 100ml 100 rs so 1000ml equals Rs?
Two ways - which are closely related. Method 1: 1000 ml is 10 times as big as 100 ml and so will be 10 times as much. Since the first is 100 rs then the second is ten times as much, which is 1000 rs. Method 2: 100 ml for 100 rs is equivalent to 1 rs per 1 ml or 1 rs per ml. At that rate, 1000 ml will be 1000 rs.
What are the four Rs of sustainability?
Rabies, Rotundas, Rashes, and Raddishes
How much rupees we can earn in tamilnadu if we study baenglish?
Rs.5000/-p.m.
What does the acryonym MG-RS stand for?
most common military method of expressing direction
What is the price of Nintendo ds in India?
The Cost of Nintendo DS in India is Rs.6,400 (in Words) Rs. Six Thousand, Four Hundred.
What is a Popular serial data transmission method?
EIA/TIA RS-232 (Recommended Standard 232)
Fixed installment method or reducing balace method which one is good?
on 1 July 2004 g ltd purchased second hand machine for Rs 40000 and reconditioned the same by spending Rs 6000. on January 2005 a new machine was purchased for Rs 24000. on June 30 2006 the machine purchased on January 1 2005 was sold for Rs 16000 and another machine was installed at a cost of Rs 30000. the company writes off 10% on the original cost every year on march 31. show the machinery account
