&
Lecture- 1
-m
Accounting
Partnership-
Treatment of Goodwill
By- CA Nitin Goel
of previous lecture
1 Completion of Introduction topic
to be covered
1 Concepts &
Basic Questions
Goodwill
-
-
Reputation
c a n
- ⑲ Bores
O
Yocre
r
Haldiran
↑ Gopel sweet
-
Sal
PO) · at
↓
tel
↓
Z
↓ Assets 50 cr
service Ass :
50 cre Goodwill loc
Product
Quality List : (Rocr)
-
-
0 cr
Net Ass .
Owe/knod H Entra ⑭- Goodwill
↳ >
-
48
BOOKS : Good sill X Cre
4
erated
(A5 26)
Kita Cam Kaz Sakte
Future main
Goodwill
Valuation
of hai
Progits
M
Year 2021
I
10
,
000
3000
Arg irgit
=
.
2022 /2000
- -
2023 Loo =
1007
So
-
Future : Mein & Salo
=>
10000 X 4 40000
4w = =
#O - -
56000
+48000
-
+
40000 + $2000
Average Profits +
I
246000
I
--
49200
5
Purcha
Goodwill =
Arg
.
Progito X
No years of
=
49200X 4 =
S
196800
Example
Year
-
Pits Weights
-
weig Pryit (Product
2021 I I
10000
(i 24000
2022 /2000 &
(π 3 5/000
2023 17000
-
&5000
---
-- /
39000 6
- --
-
85000
59000
Arg Profit ing
I
weig
hted
-
-
=
- -
-3 6
(simple)
C
-7
= 13000 ↑
- NN
-
= 3900 = 4250
s
Declin
-
-
Product
Prgits Weig
Year ht
-
- -
zo00 L 1 For
202/
2↳
IGor 2 24000
2022
&
E to
3
10000 Sooo
2023
-
- - 6
71000
-
39000
--
- -
ArgoProfits =
39
, 000 + 3
weightedAry -= Flore
-
↳
3
(simple) =
G --
13000
#Q2
80000 12000
Average Profits
+ + 1000
↳
=
4
I
92500
Normal
irgifs =
Capital Erup
.
X Rate
on
Return
= 450000 X 15% = 67500
Super Profits 92500
:
-
67500
I 25000
4/W = 25000 X 3 = I
-
I
75000
[Aag]
Yo - Y , >
- Y2 >
- Y3
+ 10 %
+ 10 %
Present
+ 10 %
133-10
value & G ↓ Or >
- 110 - 12-1
- II 12 .
10
10
Future value
Y
,
> /Of Y2 43
r
m
I
[
-
0 909
Present 17 -
1
·
1 .
wave % 8 mn 1
(o)
.
:
Factor
u
%0 -
(t) 3 7
.
:
2 + 10 + /
ye U
: I
I
-
↑10
s
10n = /
Rate : 8 12 +
-
PVF P
-
Y ,
= + = 0 :
926
-
# = 0 .
893
2
1
:
08
2
Y2 0 797
4 +2)
.
"2 2 0 .
857 = 2 :
(g)
: =
16000 X 3 48000
GJw
=
Super Profits
= 16000 =
>
-
T Q
YO 4 Y Y
, 2 3
↑ I N ↑
Fu Fl
FV
10 %
Hay 10000 I Gard 16000
Rate
1
-
-
=>
C
Presest
-
Velve
PVF
-
-
Prof its
O
Y
, - I 0 -
909 X
&
16000 I 14544
-
Preset
-
1 18
value
- x
&
0816 13216
Factor 42
(o)
=
= ↑
⑦xX
D
I 12016
X 16000
0 75/
43()3
.
=
>
-
-
--
↓ 39776
Factor =
2 486 X16000
Annuity
-
& -
3
#
Averge Profits
= 65800
400000 X 12 % = 48000
Profit
=
No rel
48
000
, 17000
Pry it
=
65000
Super
:
=
Goodwill = SPX
Aunviy Jastor
=
17000 X 3 .
604776
12-
syns =
61281 -
192
Tr
6128/
-logf to
#Q4
of Average Prgits
Capitalisation
Goodwill Capitalized
Valuey
Bus
Capital Employed
= -
-
Profit o
-
Good
=
-
410000
12 %
I
500000 -
4/0000
= 90000
>
- Industry
-x
>
-
Actual Amt In .
= 4/0000
↓ U X 12 % = Goo
A P = 60000 n = 500000
Capitalisation of Super Profit
= Progik I
so
↳ -
9000
ey
Super Profit
=
60000 -
(410000 X 12 .
)
=
60000 -
49200
I
lof00 NP
CEX&=
SP AP-NP = AP >
-
NP
- -
I °
-
°
⑦ --
Rise e+
It .
ef -
⑳
AP
Employed
I
>
-
RY-
#05
Method
) Average Profits
Since
Increasing trend so
weighted Average
Year Product
- g it's
weight >
-
2020 I 120000
12000
20fl ,
125 000 2 450 000
,
GOGG 3 390000
130000
4 60000
2023 15000
- -
10 1360000
-
-
136000
Wrighted Arg Profits /36000
=
. =
--
/O
Goodwill = 136000 X 3 =
Method
2) Super Profits
Provis 136,000
Arg
=
-
&
Pryits 500000 20%
: X 100000
Normal
=
136000 36000
Super irgits
=
= -
10008
G/W = 36000 X 3 =
⑤ 108000
3)
Annuity Method
Rate 20 % 316000 X 2 106
G/W
= %
Y =
758/6
,
I
- I
1' 20
2
Y2 I
(3)
My
=
litzogs- Io6
-
&
n) Capitalization of Arg
.
Profit
I
°
- AP-C ..
Ery ,
SP
+ -
If
156000
50000
=
6000
-
--
20t
Lot
= 68000 50000
180000
-
=
Revision
Basic & Questions
concepts
Homework
4/N 1
,
2 & 7
Summary
Questions
Basic
Concepts &
Thank
You
☺☺☺
