Q The profit for 2003-04 are Rs4000,for 2004-05 is Rs 52,200 and for 2005-06 is Rs62,400. Closing stock for 2004-05 and 2005-06 include the defective item of Rs 4,400 and Rs 12,400 respectively which are considered having market value nil The value of goodwill on average profit method is
a 47400 b. 35400 c.27400 d.34600
b.35400
Solution
| Year | 03-04 | 04-05 | 05-06 |
| Profit | 4000 | 52200 | 62400 |
| Adjusted Profit | 4000 | 52200-4400=47800 | 62400+4400-12400=54400 |
Average Profit (Goodwill) = (4000+47800+54400)/3 = 35400
Hi,
Need clarification, company has decided to invest for canteen expenses directly, where in earlier canteen was given on contract and bills were paid furnished by the contractor.Kindly let me know under which head expenses to be booked?
under miscellaneous expenditure head,
food expenses a/C
I wanted 1 clarification from your side that whether directly means the whole amount is directly paid by employess or comapny providing them sub. food
CAclubindia
