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224 Corporate Finance BRILLIANT’S

4. Calculation of Super Profits

Particulars `
Weighted Average Profit 1,54,571
Less: Normal Profit @ 8% on ` 6,96,000 55,680
Super Profits 98,891

Goodwill = 3 year's purchase of super profits = 3 × ` 98,891 = ` 2,96,673
Illustration 3.1.15
From the following information, prepare statement showing:
{ZåZ{b{IV gyMZm go {ZåZ{b{IV H$mo Xem©Zo dmbm ñQ>oQ>‘|Q> V¡¶ma H$a|…
(i) Capital employed / n«¶w³V H¡${nQ>b
(ii) Average capital employed / à¶w³V EdaoO H¡${nQ>b
(iii)Goodwill on the basis of 5 year's purchase of the average super profit
EdaoO gwna àm°{’$Q> H$s 5 df© H$s nM}g Ho$ AmYma na JwS>{db

Balance Sheet of Rain Ltd. as at 31 March, 2016
Particulars Note No. Amount
({ddaU) (ZmoQ> g§.) (am{e)
(`)
I. EQUITY AND LIABILITIES / Bp³dQ>r Am¡a bm¶{~{bQ>rO
(1) Shareholder's Funds / eo¶a hmoëS>g© H$m ’§$S :
(a) Share Capital - Equity Share of ` 10 each
eo¶a H¡${nQ>b - ` 10 H$m Bp³dQ>r eo¶a 3,00,000
(b) Reserves and Surplus - General Reserve
[aOd© Am¡a gaßbg - OZab [aOd© 1,25,000
(2) Share Application Money Pending allotment:
eo¶a EpßbHo$eZ ‘Zr n|qS>J Abm°Q>‘|Q> –

(3) Non-current Liabilities / Zm°Z-H$a§Q> bm¶{~{bQ>rO:
(a) Long-term Borrowings-10% Debentures
bm§J-Q>‘© ~m°amoB§½g - 10% {S>~|Mg© 90,000
(4) Current liabilities / H$a§Q> bm¶{~{bQ>rO:
(a) Trade Payable - Sundry Creditors
Q´>oS> noE~ëg - g§S´>r H«o${S>Q>g© 60,000
(b) Other Provisions - Provision for Taxation
Aݶ àmo{dO§g - Q>¡³goeZ Ho$ {bE àmo{dO§g 20,000

TOTAL / Hw$b 5,95,000