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What is the way to calculate the goodwill and the capital reserve
Answers (1)
The Reserves and Surplus of S Ltd. as on 1st April 2023 were ₹5,20,000. Out of this, the portion considered as capital profit is ₹5,20,000, while the remaining ₹4,10,000, along with adjustments, is treated as revenue profit, giving a closing balance of ₹9,30,000. An abnormal gain of ₹9,000 is deducted from revenue profit and added to capital profit (since its purely pre acquisition) The bonus part is reduced from capital column and added to revenue column Also apportion dividedn between pre and post. Adjust revaluation of plant and machinery. Post this you should be able to get. Share your working here. Will correct if required.
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