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Akash (CA Final Article Assistant)   (1671 Points)

31 May 2011  

1.Sushila's business disclosed the following profits for last two years:

2008        Rs. 40,000(including an abnormal gain of Rs 5000)

2009        Rs. 50,000(After charging an abbormal loss of Rs. 10,000)

The Value of Goodwill on the basis of one year purchase of the average profit of last two years is

 

 

2.Books of Ekta, shows on 1st January 2006 furniture Rs. 20,000. During the year a part of the

furniture whose book value on 1st January 2006 is Rs. 1,200 has been exchanged with another

furniture by paying additional Rs. 500. Ekta charge depreciation @ 10% p.a. The net amount

of the furniture to be shown in the balance sheet will be

(a) Rs 18,508 (b) Rs 20,440

(c) Rs 18,396 (d) Rs 18,478