The balance sheet of Good Luck Co. Ltd. discloses the following financial position as on 31 March…

The balance sheet of Good Luck Co. Ltd. discloses the following financial position as on 31 March 2010:

Liabilities

Assets

Save your time - order a paper!

Get your paper written from scratch within the tight deadline. Our service is a reliable solution to all your troubles. Place an order on any task and we will take care of it. You won’t have to worry about the quality and deadlines

Order Paper Now

Paid-up Capital:

Goodwill At Cost

45,000

45,000 Shares of

4,50,000

Land & Building

2,62,500

Rs. 10 Each Fully Paid

At Cost (Less Depreciation)

Capital Reserve

90,000

Plant & Machin-

1,35,000

Sundry Creditors

1,06,500

ery at Cost (Less

Provision for

82,500

Depreciation)

Taxation

Stock At Cost

1,72,500

P&I A/c

39000

Book Debits

1,47,000

Less: Prov. for

Bad Debts 4.500

142,500

Cash At Bank

10,500

7,68,000

7,68,000

You are required to value the goodwill of the company with the additional information as following: Adequate provision has been made for income tax and depreciation Rate of income tax at 50% The average rate of dividend declared by the company for the past 5 year was 15% The reasonable rate of return on capital invested was 12%

 

Looking for a Similar Assignment? Let us take care of your classwork while you enjoy your free time! All papers are written from scratch and are 100% Original. Try us today! Use Code FREE15