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00:00:00Thank you very much.
00:00:30Weak, able and lazy are in partnership, sharing profits and losses in the ratio of 2 is to
00:00:421 is to 1. So, weak, able and lazy, PNL ratio being 2 is to 1 is to 1. It is agreed that
00:00:53interest on capital will be allowed at the rate of 10 percentage per annum and on drawings
00:01:028 percentage per annum. No interest will be charged or allowed on current account. Current
00:01:10account parents are fixed capital account. So, fixed capital as well as fluctuating capital.
00:01:17I will have fixed capital along with the current account open money account. And capital details
00:01:24in the year beginning 1, 1, 22, 75,000, 40,000 and 30,000. Current account balance
00:01:3410,000, 5,000, 5,000 negative. Weak, able and lazy. Drawing several
00:01:47pannier karanga bichunakke 15,000, 10,000 and 10,000. The draft accounts of 2022 showed a net profit of
00:01:5860,000 before taking into account interest on capitals and interest on drawing subject to the
00:02:02following rectification of errors. So, interest on capital, interest on drawing adjustment
00:02:08that is the net profit of 60. May be error a. Ok. Life insurance premium of V
00:02:18computing to rupees 750 paid by the firm on 30th June 2022 has been charged to the
00:02:23of the miscellaneous expenditure. So, it is an error. Am I right? In the LIC premium week payment
00:02:38happened, during the yearIrow at the year I approach you have the YuanOFF who form an error manager .
00:02:51At the end of the year do not flav silk the premium that you now pay from the firm. The
00:02:55A pair trip ofаю rồi shaking through 50.、 It is a part of drawings area with 1,000. The
00:03:00it is a part of drawings like. That is a drawings that are going to be
00:03:10it is wrong. So, I am adding that back to the original one should be subtracted from the
00:03:15weak account. Drawings, LIC drawings, life insurance policy drawings.
00:03:24Repairs of machinery amounting to rupees 10,000 has been debited to the plant and
00:03:28plant, plant account and depreciation there are charge 20 percentage. Repairs
00:03:34are going to be, plant account debit which is wrong. Repairs are going to be
00:03:42adjustable, add back. Repairs are going to be, planter measure debit
00:03:48and depreciation. Depreciation is 20 percentage, 2,000 charge.
00:03:528,000 rupees, asset account inflate.
00:03:56Asset account charge, you can reverse profit, adjust. So, profit will be minus item.
00:04:06Minus, minus repairs. Error for the plant and machinery and depreciation and all 8,000.
00:04:16Now, if you say, what is the wrong entry?
00:04:20If you say, what is the wrong entry?
00:04:22What is the wrong entry?
00:04:24Plant account debit to bank and depreciation provide. Depreciation account debit to plant.
00:04:36plant. In the meantime, rent entry port. The value being, 10,000, 10,000. Depreciation being, 2,000, 2,000.
00:04:47Repairs upon Debit to Bank to the bank. I am right. 10,000-10,000. Rectification of Entry, if you come to the bank, there is a problem.
00:05:04And the net number is correct entry. Repairs upon value being 10. Wrong entry, debit to the bank, credit to the bank. This value being 10,000. Depreciation reverse debit to the bank, the value being 2000.
00:05:30And the plan to credit to the bank, credit to the bank, credit to the bank.
00:05:37Okay. This is the rectification entry. Plan to debit to the bank, credit to the bank, credit to the bank.
00:05:47Repairs upon debit, plan to debit to depreciation.
00:05:53But if you prepare the account for the bank, you need to pay the bank.
00:06:08Debit le uru 10 irikku, credit le uru 2 irikku, aadha cancel panyangna, nama kya debit le 8 vandhu irikku, aadha dhaa, ith oadha ultimate entry vandhu, plant, pn le akkoon debit 8000 to plant akkoon 8000, aadha yadha data pottnay, aadha yadha data pottnayna, when there is an asset, error, error means there may be error, probably error of principles iriklaam, revenue capital, our capital revenue
00:06:35iriklaam, that is called error of principle iriklaam, that is how you can do it simply. So, I have done the same way, this will reduce the planter machinery's value and profit value also, planter machinery ith aadha
00:06:58then the last one, travelling expenses 3000 of e-bill for the pleasure trip to UK paid by the firm. So, e-bill
00:07:10pay irikku ardu, our power pottnayna, power pottnaydukku, you i-nge ardu payment pottnay excilurukkiraam, which is also wrong. So, like, tour expenses, also ea part of drawings, so drawings lal poonnadhu,
00:07:25yi-nge e-pn lakkoon debit pottnayduk reverse pottnaydukenga plus pottnayduk, ade sayam e-dkula drawings lal poottu kottukkirayam, e-billokkoon lal poottu kottukirayam.
00:07:32In the two cases, the date is 30th June. Nothing is stated in half year. If you say, half year interest is correct.
00:07:48Now, you can find out the net profit adjusted. So, 753,000 should be added. So, 8,000 should be subtracted.
00:07:55Ultimate value is 55,000. So, 55,000. That is all. You are required to prepare profit and loss appropriation account, current account of partners weak, able and lazy for the year.
00:08:10So, this will be some easier rectification. Normally, we will put it.
00:08:17Okay.
00:08:19Come on. Join with me. Come on.
00:08:34Let's go.
00:08:36Let's go.
00:08:37Let's go.
00:08:38Let's go.
00:08:40Let's go.
00:08:42Let's go.
00:08:48Let's go.
00:08:50Let's go.
00:08:53Now,
00:09:12Question number two.
00:09:19Capital account
00:09:19Current account.
00:09:28This is for weak, able, lazy.
00:09:31This is P&L appropriation.
00:09:37Start with this one by net profit.
00:09:40After correction, this is the net profit 55,750.
00:09:45And capital balance being weak, able and lazy 75,000, 40,000, 30,000.
00:10:04Current account balance being by balance, weak 10,000, able 5,000, lazy the other side to balance, 5,000 debit balance.
00:10:22Drawings.
00:10:23Drawings.
00:10:24Drawings.
00:10:2515,750.
00:10:27Error, none of the adjustment.
00:10:3015,750.
00:10:31And 13,000.
00:10:36Here, 10,000.
00:10:44And then interest on capital for weak, able and lazy at the rate of 10 percentage.
00:10:54Now, fixed capital, 10,500 for able, sorry weak, 4,000 for able, 3,000 for lazy, what I debit in P&L appropriation will be credited in their account, P&L appropriation account.
00:11:15Interest on capital.
00:11:16Interest on capital, weak 7,500, able 4,000 and lazy 3,000.
00:11:30Then interest on drawings.
00:11:34Interest on drawings for weak, able, lazy at the rate of 8 percentage.
00:11:41Otherwise, you can calculate only for half year.
00:11:454 percentage data protocol.
00:11:46In the drawings, 4 percentage protocol.
00:11:4815,750.
00:11:494 percentage protocol.
00:11:516,000.
00:11:52630.
00:11:53Okay.
00:11:54630.
00:11:55Okay.
00:11:56630.
00:11:5713,000.
00:11:584 percentage.
00:11:59520.
00:12:0010,000.
00:12:014 percentage.
00:12:02400.
00:12:03So, other.
00:12:04So, other.
00:12:05I am going to account.
00:12:06Charge.
00:12:07P&L appropriation account.
00:12:08Under that.
00:12:09Interest on drawings.
00:12:10630.
00:12:11630.
00:12:12630 for weak, 520 for able, 400 for lazy, weak, able, lazy.
00:12:178 percentage.
00:12:18About.
00:12:198 percentage.
00:12:20So, half up.
00:12:214 percentage.
00:12:22Okay.
00:12:23Half up again.
00:12:24The report.
00:12:27Right.
00:12:28Uh, how do I get to work?
00:12:309,000.
00:12:315,000.
00:12:32Leave.
00:12:33That's fine.
00:12:346,000.
00:12:359,000.
00:12:36Do I get to work?
00:12:37I have to find something called that.
00:12:38So, I have to draw a full call.
00:12:39You can also have to draw a full call.
00:12:40So, I have to draw a full call.
00:12:42That's fine.
00:12:43You can also draw a full call.
00:12:45Come on. Taddy this and find out the net profit here. This value being 57,300 in the credit
00:12:57side total. Weak, Able and LASIKI. 2 is to 1 is to 1 ratio. I think you will be getting
00:13:0942,800 here. 21,400 for Weak, 10,700 for Able, another 10,700 for LASIKI. The amount available
00:13:25in the debit should be transferable to the credit side here. P&L appropriation of particular
00:13:30profit and loss. 21,400, 10,700, 10,700. First close to P&L on the other hand. This is capital
00:13:45and current account tally. Current account total 38,900. Here, 1,900. Here, 1,900. Here,
00:14:001,900. Here, 1,900. Here, 1,900. Here, 1,900. Here, balance carry down being week 22, 520. Able
00:14:20LASIK is 6,180. LASIK is 15,400. He gets the balance on the other side. I think the balance
00:14:32being 1,700. Balance carried out. LASIK gets negative balance. LASIK gets negative balance.
00:14:50Lobby if needed.
00:14:57LASIK get positive balance.
00:15:03If you like the CA, they can try and figure it out later.
00:15:08Espada but he makes positive balance.
00:15:14Clear.
00:15:44Clear.
00:16:14Question number 3, question number 3, let us see.
00:16:44Rom and Raheem are in partnership sharing profits and losses in the ratio of 3 to 2, 3 to 2 ratio.
00:16:59What is the requirement?
00:17:01So, the distribution of net profits among the partners out of them.
00:17:06Distribute panna poodh maanadhu, vena namha, ur format avar kothukla, PNL Appropriation Account.
00:17:14PNL Appropriation Account.
00:17:21Okay.
00:17:23Their PNL ratio being 3 to 2.
00:17:25As Rom and accountant of his advancing years feels he cannot work as hard as before.
00:17:33The chief clerk of the firm Ratan is admitted as a partner with effect from 1st January 2022.
00:17:43So, in the Aandell, Muthal Nallel, Ratan Pursawlar, Ram Raheem Administrate, Ram Raheem Administrate and Ram complete workup.
00:17:52PNL Appropriation Account.
00:17:53They are promoted as the chief clerk under direct workup.
00:17:54They are promoted as the chief clerk of the firm and Ram Raheem.
00:17:55And become sentated to about 1 tenth of the net profits and anything else.
00:17:59They are involved with salary and nothing else.
00:18:00They are involved with net profits.
00:18:01They are involved in the salary and nothing else.
00:18:02The mutual ratio between Ram and Rahim remaining unaltered.
00:18:09Before becoming a partner, Rathan was getting a salary of 500 per month together with a commission of 4% of the net profits after detecting his salary and commission.
00:18:26It is provided in the partnership deed that the share of Rathan's profit as a partner in excess of the amount to which he would have been entitled if he had continued as a chief clerk.
00:18:44It is provided in the partnership deed that the share of Rathan's profit as a partner in excess of the amount to which he would have been entitled if he had continued as a chief clerk.
00:18:55Should be taken out Ram's share of profits.
00:18:58It is very interesting.
00:19:00In the point, you need to understand.
00:19:03Chief clerk at the same time,
00:19:06Chief clerk at the same time,
00:19:08Chief clerk at the same time,
00:19:10Chief clerk at the same time,
00:19:12Chief clerk at the same time,
00:19:14Salary is 6,000,
00:19:16Commission is 4% of the net worth.
00:19:19Ok,
00:19:20Aver promote and partner promote.
00:19:24Partner promote.
00:19:26Partner promote.
00:19:28One tenth of the net profits.
00:19:31Ok,
00:19:32Becomes entitled one tenth of the net profits and nothing else.
00:19:35One tenth of net profit.
00:19:37ш listens now.
00:19:38That would be shared by Ram.
00:19:39and is said to Ram's cash to own Z THERE2,
00:19:41Second of the net profits
00:19:43Now tell Ram's the net worth of the net worth.
00:19:45If anyone knows,
00:19:46уров 300 plus super shifts to ouranip hop and alsoitable one thousand shares.
00:19:49But not one cents per from yourwer Tarb is,
00:19:53The need for the net worth of この net worth Alright?
00:19:58If there is an excess payment to the newly admitted partner, that will be shared only by ROM. ROM the Sharpener. So, net profits being 1 lakh 10,000.
00:20:12Net profit is 1 lakh 10,000. Okay. Now, as Chief Clerk, as Chief Clerk, as Chief Clerk,
00:20:37as Chief Clerk, as Chief Clerk, as Chief Clerk, are getting $1,100,000. That's why we can get salary.
00:20:48Salary is $6,000. Balance is $1,4,000. This is net profit before his commission.
00:21:00In the commission, you will get net profit after commission, right?
00:21:064% are you going to get the net profit after detecting his salary and commission.
00:21:15In the on, what term is net profit after commission?
00:21:18That is what you say.
00:21:20Commission 4.
00:21:22You can do the cross multiplication.
00:21:26So, one on four share, one lakh four thousand and four share is four thousand.
00:21:31So, after this, you have earned $6,000 plus $4,000.
00:21:37So, $10,000, you have earned as a chief accountant.
00:21:41Now, he was promoted as a partner.
00:21:44How are you going to get the net profit?
00:21:47One tenth.
00:21:48How are you going to get the data?
00:21:5111,000.
00:21:5311,000.
00:21:54How are you going to get the power?
00:21:55How are you going to get the power?
00:21:561,000 excess.
00:21:57Any amount payable to him in excess of the excess doing will be adjusted only ROM.
00:22:03Where are you going to be adjusted?
00:22:05ROM.
00:22:06We are going to adjust.
00:22:08Now, PNL ratio.
00:22:11PNL share.
00:22:12Who is wrong?
00:22:13ROM.
00:22:14Rahim.
00:22:15And Rattan.
00:22:17Rattan.
00:22:18Rattan.
00:22:19Old Formate.
00:22:20Where are you going to get the power?
00:22:2110,000.
00:22:22Okay.
00:22:23How are you going to get the power?
00:22:24Was stocking again to get the power?
00:22:25In 1000 .
00:22:26Okay?
00:22:27Lesson less than a priest.
00:22:281,000,000 .
00:22:341,000,000.
00:22:351,000,000 .
00:22:40Now you go to a calculation.
00:22:41How do you like this?
00:22:43We have generated 1,000,000.
00:22:46Then the new value being, Rom will get Rs.59, Regime will get Rs.40, Rathan will get Rs.11,000-Rathan.
00:23:12Rathan will share the Rs.11,000. Is that clear?
00:23:16guaranteeing mother case guaranteeing mother case
00:23:46is
00:23:50the
00:23:51have
00:23:52kill
00:23:53looked
00:23:55walk
00:23:58not
00:24:01them
00:24:02the
00:24:04okay
00:24:11hmm
00:25:14Now, we will move on to the next illustration.
00:25:34Question number 4.
00:25:35Okay.
00:25:50some seems to be a missing details right
00:26:04ok question number 4 I will do this way
00:26:30question number 4
00:26:34first page runnus ulhi irukkaraaga
00:26:37x and y are partners as per the terms of agreement interest is allowed on capital at the rate of 8 percentage and charged on drawings at 10 percentage
00:26:50so who are the partners x and y
00:26:56other interest on capital onlus ulhi irukkaraaga
00:27:018 percentage interest on drawings 10 percentage x withdrew 40,000 per month at the end of each month
00:27:17ok
00:27:19so x in apanirukkaraara
00:27:2340,000 at the month of at the end of each month
00:27:28ok rupees 40,000 per month at the end of every month
00:27:41y case la varamboodhu 1,020,000 at the end of each quarter
00:27:46so first quarter end
00:27:49mars 31,000 at the end of each month
00:27:52mars 31,000 at the end of each month
00:27:53first quarter in the end of each month
00:27:54june arukkuma
00:27:561.2 lakhs
00:27:591.2 lakhs ohm
00:28:01and
00:28:05ok
00:28:06why
00:28:0830th
00:28:11june 20
00:28:122 annaki
00:28:13over 1.20 ohm
00:28:1539.22 annaki
00:28:17in over 1,20 ohm
00:28:1931st december 22
00:28:23in over 1,20,000 ohm
00:28:2531st
00:28:2731st
00:28:28mars 23 annaki
00:28:30over 1,20,000 with the rabanirukkaraara
00:28:31so we had to fill the missing details here
00:28:35at the end of the period
00:28:38so now
00:28:39in case of x
00:28:42so x
00:28:45you know that
00:28:46every month
00:28:48yendin so now
00:28:49yendna pannu yenge
00:28:50monthly drawings into
00:28:53monthly drawings into
00:28:57what is the number we multiplied
00:29:005.5
00:29:0211 into 12
00:29:0366 by 12 ok
00:29:0566 by 12 is the answer
00:29:08the value being 5.5
00:29:11into rate of interest
00:29:14monthly drawings being 40,000
00:29:16into 5.5
00:29:19rate of interest being 10 percentage
00:29:2122,000
00:29:24you know
00:29:2522,000
00:29:2622,000
00:29:27so
00:29:30interest on drawings for x being 22,000
00:29:33yi kwaram bodhu rupees
00:29:35better multiplied with the number of month eligible for
00:29:39year end of the 31st march
00:29:41either 9 months
00:29:436 months
00:29:443 months
00:29:450 month
00:29:46then the product be
00:29:48product be
00:29:49product be
00:29:51yelo
00:29:552,000
00:29:55yelo
00:29:58yelo
00:29:59yelo
00:29:59yelo
00:30:00wyrdhi
00:30:02huh
00:30:021,000
00:30:0220,000
00:30:039
00:30:04oh
00:30:04yippiquid 끊
00:30:05data
00:30:06kundru
00:30:06iti ijip pomae
00:30:079 months
00:30:08going in interest
00:30:09yelo
00:30:10yelo
00:30:10yelo
00:30:11yelo
00:30:12yelo
00:30:13yelo
00:30:14yelo
00:30:144,000
00:30:15yelo
00:30:15yelo
00:30:15yelo
00:30:17yelo
00:30:18yelo
00:30:18yelo
00:30:18yelo
00:30:19Product of processor 3,60,000, 7,20,000, 10,80,000 and total value being 21,60,000.
00:30:35So 21,60,000 into 10 percentage month, you have to convert that to again month divided
00:30:44by 12, 21,60,000, 18,000 is the final value, this is 18,000, so interest on drawing should
00:30:56be 40,000.
00:31:05And interest on capital, x koanthu 160 kuttu irukkaraanga, appa from this it is very clear,
00:31:14this value should be, in that will be a balance, 1,60,000 divided by 0.08, yaha irukkhu x, okay
00:31:28and interest on capital, x koanthu 160 kuttu irukkaraanga, 8 percentage interest, that full value
00:31:35will be 1,60,000 divided by 8 percentage, 1,60,000 divided by 8 percentage, 20,000, 20,000,000 capital
00:31:45ndraindhauk Six, capital irukkara dots, uunggilukkhu, asli kakket 8 percentage interest on
00:31:46there is 8 percentage interest on dirukkhu, ade yamadari, yut nak prejudhukkara, 2,88,000, 20,000,
00:31:46oai y Tao yoda yang ada ugla urukknao, 1,28,000, 20,000, 20,000, 20,000, 20,000, 20,000, 20,000, 20,000, 20,000, 20,000, 20,000
00:31:52That is only for x, the value being 3,60,000.
00:32:193,60,000 and profit transferred on the one-third, it is the one share, now it is the two share
00:32:29on the x. 5,60,000 should be x, y value on the x.
00:32:34Now, interest on capital, interest on capital being 1,60,000 for x, 1,28,000 for y and
00:32:49by profit and loss, x will be 5,60,000 and x will be 2,80,000 rupees, 2,80,000.
00:33:00Now, you can get the total here, 14,88,000 rupees is the total of debit side.
00:33:11Now, profit and loss balance contribute to 40,000 interest on drawings, 14,48,000 should be the net profit for the period.
00:33:2214,48,000.
00:33:23And interest on, here's the drawings.
00:33:25Drawings, here's the drawings.
00:33:27Drawings, here's the drawings.
00:33:29Y.
00:33:30Y.
00:33:31Y.
00:33:32Y.
00:33:33Y.
00:33:34Y.
00:33:35Y.
00:33:36Y.
00:33:37Y.
00:33:38Y.
00:33:39Y.
00:33:40Y.
00:33:41Y.
00:33:42Y.
00:33:43Y.
00:33:44Y.
00:33:45Y.
00:33:46Y.
00:33:47Y.
00:33:48Y.
00:33:49Y.
00:33:50Y.
00:33:51Y.
00:33:52Y.
00:33:53Y.
00:33:54Y.
00:33:55Y.
00:33:56Y.
00:33:57Y.
00:33:58Y.
00:33:59Y.
00:34:00Y.
00:34:01Y.
00:34:02Y.
00:34:03Y.
00:34:04Y.
00:34:05Y.
00:34:0680 000 rupees and here 20 lakhs 8 000 rupees 30 lakhs 8 000 rupees sorry 80 000 rupees
00:34:20and 20 lakhs 8 000 rupees so balance carried on for x being 25 lakhs
00:34:2878 000 why quorum for the 15 lakhs 10 000 rupees so we got this value
00:34:38clear
00:34:58average method and super profit method and annuity basis
00:35:25there is capitalization basis there is no longer method
00:35:30there is average simple average method and waiter average method
00:35:35there is no longer method okay see here is an example
00:35:44okay in the example one put profit
00:35:47very simple govern it
00:35:50average profit
00:35:52waiter average method last five years
00:35:56profit last five years
00:35:59actually ippethe thang goodwill
00:36:01is
00:36:03some years of purchase
00:36:07probably is
00:36:103 years
00:36:11purchase of
00:36:155 years
00:36:18weighted average profit
00:36:21that is
00:36:22the profit
00:36:25last 5 years
00:36:2730,000
00:36:2840,000
00:36:2950,000
00:36:3160,000
00:36:3270,000
00:36:34rupees in thousands
00:36:34profit
00:36:37in the years
00:36:40year 1, year 2, year 3, year 4, year 5
00:36:47we assume
00:36:48this will be the latest year
00:36:51the oldest year
00:36:54the latest year
00:36:57will have more weightage
00:36:58in the immediate future
00:37:00in the immediate future
00:37:00in the immediate future
00:37:00in the immediate future
00:37:02LKG, UK
00:37:03learning
00:37:04school
00:37:04topper
00:37:04the CA
00:37:05pass
00:37:05guarantee
00:37:06that will reflect
00:37:11in your CA results
00:37:12today's performance
00:37:14will reflect
00:37:14tomorrow's
00:37:15expectation
00:37:165
00:37:18latest year
00:37:19highest
00:37:20weightage
00:37:21the weight
00:37:22if you could
00:37:22look at
00:37:23n is equal to 5
00:37:24in the 5
00:37:26will be the highest
00:37:26weightage
00:37:27will be offered
00:37:27to the latest
00:37:28year
00:37:29profit
00:37:31that's a
00:37:31process
00:37:32we have
00:37:324 years
00:37:34and all
00:37:34latest profit
00:37:364, 3, 2, 1
00:37:37correct
00:37:37you have to reduce 1 after 1 for every oldest profit
00:37:38if you multiply
00:37:39you will be getting the weighted profit
00:37:40you will be getting the weighted profit
00:37:41ok
00:37:42so
00:37:42weightage
00:37:43you will be getting the weighted profit
00:37:43so
00:37:44150
00:37:44240
00:37:45350
00:37:46350
00:37:47and this will be the summation of weighted profit
00:38:17being 850
00:38:19we need to get weighted average profit
00:38:22of average profit
00:38:24if we can begin
00:38:25this is what about the summation of weighted average profit
00:38:27ok
00:38:28and
00:38:30weight over the summation
00:38:32so
00:38:33you have to divide the
00:38:34weighted average profit is equal to
00:38:36summation of weighted profit divided by
00:38:39summation of weights
00:38:41ok
00:38:42summation of weights
00:38:44because
00:38:45because
00:38:48this 850 is for
00:38:4915 weight
00:38:50above
00:38:51what value is
00:38:52average profit
00:38:5356,667
00:38:55this is weighted average profit
00:38:57so
00:38:58you have to say
00:38:593 years
00:39:00purchase
00:39:015 years
00:39:02average profit
00:39:033 years
00:39:04purchase
00:39:053 years
00:39:06purchase
00:39:073 years
00:39:08so
00:39:09goodwill is equivalent to
00:39:103
00:39:11into
00:39:125 years
00:39:13weighted average profit
00:39:145,667
00:39:15the ultimate value being
00:39:171,00,70,000 rupees
00:39:20ok
00:39:21will be your goodwill
00:39:22governing it
00:39:23goodwill is equal to
00:39:243 years purchase of
00:39:263 years purchase of
00:39:285 years
00:39:29paid
00:39:305 years
00:39:31paid average profit
00:39:345 years
00:39:36paid average profit
00:39:37what is
00:39:385 years
00:39:39paid average profit
00:39:40what is
00:39:414
00:39:42business
00:39:43new today, estimation.
00:39:45
00:39:47...
00:39:54No.
00:39:55...
00:39:57We have built the reputation, so as, because of that reason, you can get that same profit
00:40:09for at least 3 years. Take all of my assets and liabilities and value as per the market
00:40:14worth. So, remember simple, how can we calculate now what is the average profit? The average
00:40:28profit is the base to determine what is the expected profit in the future, future maintainable
00:40:34profit. Second, years of maintainability, how many years do you think? If you travel
00:40:40regularly, regular, regularly and the next events. You are highly satisfied with the shop,
00:40:45a lot of products are not there, how much do you do, you are not there, it is not there,
00:40:50you are not there, you are not there, you can't go there, you can't go there, you can't
00:40:54go there, no one's consistent, not only in this shop, but even in the shop is there.
00:41:00So, this business will give you this profit for 3 years, which profit, the profit we expected, how can we expect based on that?
00:41:30Based on the past year's profit and the based on the past year's profit, the weighted average profit, we have weighted average profit.
00:41:37Not only weighted average, simple average profit is also we have in this example we will see.
00:41:47The net profits for the past 5 years being this one, calculate the goodwill on the base of 4 years purchase of the average profits of the last 5 years.
00:41:55Average profit of last 5 years is indication of future maintainable profit.
00:42:00What about the 4 years purchase?
00:42:02Okay, period of maintainability.
00:42:04How much should you have to take the average profit?
00:42:05The average profit is guaranteed.
00:42:06So, you have to add all these 4 or 5 items divided by 5.
00:42:07So, 50,000, 40,000, 52,000, 48,000, 56,000.
00:42:09Okay.
00:42:10It is the simple average profit method.
00:42:11Simple average method.
00:42:12You have to take the total value.
00:42:14You have to take the total value.
00:42:15You have to take the total value.
00:42:16You have to take the total value of the bank.
00:42:19And, you have to take the total value of the bank.
00:42:21Yes, 2,46,000 divided by 5.
00:42:23Simple average profit is like 49,200.
00:42:27S, 2,46,000 divided by 5, simple average profit in this case being 49,200, period of maintainability,
00:42:44number of years we expect being 4. If I multiply these two then you will be getting the goodwill,
00:42:48so goodwill is here 196,800, clear? This is simple average profit method. Next, next, super profit method.
00:43:07The super profit method in this case is that I am saying that we have assets and values. Okay, that is one of the 10.
00:43:18In this case, the company is earning power because of your reputation. That's why one of the 1.5,000,000,000 is extra.
00:43:28Buyers, you say that you have 10.5,000,000,000,000,000.
00:43:34She said that the bank will receive an amount of money at the top.
00:43:39Do you have to do the bank?
00:43:42Sir, it is somebody who has the bank to come.
00:43:46We will receive an amount of money at the top.
00:43:53If you have the bank, you might be more than a decrease in two years.
00:43:59The government has to pay a lot of cost.
00:44:00If you asked, what you asked?
00:44:01If you asked me to ask, you asked the question?
00:44:02If you said, you will ask for 10-0, you will ask me to ask them.
00:44:06If I do ask you to ask you, you will ask me to ask me to ask them,
00:44:08if you ask for 10-0, you will ask me to ask me,
00:44:11if you ask me to ask me,
00:44:13if you ask me to ask me to ask the question,
00:44:15it will be a little bit higher than the price.
00:44:17This is the super profit method.
00:44:18Usually, the super profit method will be less than the weighted average method.
00:44:22It will be a simple average method.
00:44:23Why?
00:44:24If you ask for this, not for any extra unability is going to be payable as a goodwill.
00:44:28Still, only extra earning power, you are not entire earning power, only the extra earning power, and the Patholishirva capital investment
00:44:36So, in the super profit, one example, right here, this example, okay
00:45:01Now, super profit, what do you say?
00:45:06Actual profit, what do you say?
00:45:10Actual profit, what do you say?
00:45:15Future maintainable profit we expect in the coming years
00:45:18Based on the previous year's average profit, simple average, greater average
00:45:22This is a super profit, this is called super profit
00:45:29You understand the logic?
00:45:31Normal profit, what do you say?
00:45:32Normal profit, what do you say?
00:45:33Normal profit, what do you say?
00:45:34Capital implied, what do you say?
00:45:35Capital implied, what do you say?
00:45:36It is a super profit, this is called super profit
00:45:38You understand the logic?
00:45:39And period of maintainability, if you multiply that super profit and this one, then you will
00:45:44get what?
00:45:45You will get goodwill, okay
00:45:52The firm of ABC has a total capital investment of 450, the firm earned net profits during the
00:46:12the last four years, last four years, year one, year two, year three, year four, 70, 80, 120, 100
00:46:20you can do it
00:46:22The reasonably expected return is 15 percentage having regard to the risk involved
00:46:26So that's how you are going to move on
00:46:28I will do it
00:46:29How are you trying to do it
00:46:30If you if you are doing some questions, you can talk about it
00:46:31You may ask for a little bit
00:46:32If you are paying attention to the firm
00:46:33but you are paying attention to it
00:46:34If you are paying attention to it
00:46:36If you are paying attention to the bank, if you are paying attention to the bank
00:46:37your pay attention to the bank
00:46:39Total 370, divided by 4 years
00:46:42you will get simple average profit
00:46:45otherwise that's the same thing
00:46:46Do it
00:46:47future, maintainable, expected profit 92.5
00:46:52So, 92.5 will be my expected profit son. Okay, if you invest in this money, you can expect at least 15% as a decent profit. Okay, you can say decent amount.
00:47:20So, if you invest in this business, you have to ask me goodwill only for that 25,000, not the full value.
00:47:35So, if you invest in this company, you have to ask me goodwill only for that 25,000, not the full value.
00:47:37So, if you invest in this company, you have to ask me goodwill only for that 25,000.
00:47:42So, if you invest in this company, you have to ask me goodwill only for that 25,000.
00:47:49So, if you invest in this company, you have to ask me goodwill only for that 25,000.
00:47:54So, if you invest in the company, you will have to ask me goodwill only for that 25,000.
00:48:01So, 10 years is purchased, 3 years is purchased. 3 into 25, 75 will be the good value. Is
00:48:07that clear? Now, now, this is the annotate method.
00:48:17In the book, there are two illustrations. We have been given two illustrations and ratios calculations in the chapter. So, we will try to finish up on that.
00:48:45So, now, what do we do? Simple average profit method, weighted average profit method, super profit method. Super profit, future maintainable profit or expected profit minus normal profit subtract. In the normal profit, capital employed into normal rate of return multiplied by the normal profit.
00:49:12So, whatever it may be, it should be multiplied with the number of years of maintainability.
00:49:16If you are the profit, you will be able to maintain the number of years of return.
00:49:20In the super profit method, one more variant called annuity method. And the annuity method, if you are going to be there.
00:49:28Annuity method, depending on what you are going to say, I will explain directly. Okay, annuity method. So, annuity method both governs. This is called annuity method.
00:49:43The annuity method.
00:49:46This is the annuity method.
00:49:47So, annuity method is revenue, annuity method.
00:49:50You always discuss annuity method, annuity method.
00:49:51Now, what is it?
00:49:53What is the goodwill? Goodwill is nothing but you have to multiply the super profit with the number of years of purchase 15,000.
00:50:01That's why you tell us. What are our money? You have to argue one argument.
00:50:07If you have any goodwill or any goodwill or any goodwill or any goodwill or any goodwill or any goodwill or any goodwill or any goodwill or any goodwill.
00:50:14That's the right thing I have to make it and you have your reputation.
00:50:17Do you take the rest of this? How much money you can give your money?
00:50:22If you have the highest value in your money, in your money or it will be $500, in your money or the other money.
00:50:29How to use this
00:50:31I would use this
00:50:330
00:50:351
00:50:372
00:50:403
00:50:404
00:50:415
00:50:435
00:50:456
00:50:475
00:50:486
00:50:497
00:50:5110
00:50:52And
00:50:5310
00:50:5410
00:50:5411
00:50:5510
00:50:5610
00:50:59So now we have to find out the PV factor, that company is where we look at the rate of PV factor.
00:51:28So now we have to find out the price of PV factor, that company is $0.8696.
00:51:35So if I multiply that super profit for the year 1 with the PV factor for the year 1, you will be getting that discounted super profit.
00:51:42So now we have to find out the price of PV factor.
00:51:49So now we have to find out the price of PV factor.
00:51:56So now we have to find out the price of PV factor.
00:52:03So now we have to find out the price of PV factor.
00:52:13So now we have to find out the price of PV factor.
00:52:20So we have to find out the price of PV factor.
00:52:25So now we have to find out the price of PV factor.
00:52:32So we have to find out the price of PV factor.
00:52:34So now we have to find out the price of PV factor.
00:52:40So we have to find out the price of PV factor.
00:52:532,5 putting in there, 2,2,6,8. That's why we calculate the PE factor. Maximum time value of money
00:53:05you can study or study the concepts. In the PE factor, in your non-scientific calculator,
00:53:12we calculate the short cut limit. See, governing it, 15 percentage are 1 divided by 1.15,
00:53:251 plus 1 i, 1 divided by 1 plus i, that's the format. If you equal to 0.8695,
00:53:33first year discount factor, put it in there. If you equal it, you have 2, 3, 3, 3, 3, 4,
00:53:43in your non-scientific calculator, in your non-scientific calculator. Is that clear?
00:53:51So, usually anti-factor number, after 3000, this PE factor material, what value is
00:53:58is this summation is goodwill and anti-method. If it is $15,000, you can sell it,
00:54:05$15,000, if you pay the interest, $15,000. If any $50,000 you do ?
00:54:08Why are you able to sell this money? So, if you want to sell it, this money
00:54:11ients are removed from the PE factor, in the process PE factor, discounting PE factor.
00:54:15It is called discounting. You know that, super profit 3000 in your opinion,
00:54:22If you multiply these two, you will be getting the answer directly, no issues in that.
00:54:36If you multiply these two, you will be getting the answer directly.
00:54:58If you multiply these two, you will be getting the answer directly, no scientific calculator, 1 divided by 1 plus i, so 1 plus 0.15, so 1 divided by 1.15 equal first year, second year, third year, fourth year, fifth year.
00:55:22If you multiply these two, if you multiply these two, you will get the answer directly.
00:55:30If you multiply these two, you will get the answer directly.
00:55:34So, if you multiply these two, you will get the answer directly.
00:55:40So, if you multiply these two, you will get the answer directly.
00:55:50You will receive the answer directly.
00:55:51Okay.
00:55:52So, you will get the answer directly.
00:55:53So, when you multiply these two, you will receive the answer directly.
00:55:55So, the Gt button is faster.
00:55:57So, what is the logic of the super profit?
00:55:59What is the logic of the logic?
00:56:00You will get the answer directly from the 5 and 6 million.
00:56:02That is because we remove the interest calculation, we are not working on the discount.
00:56:04So, the logic is the logic.
00:56:07the logic. So, super profit into present value factor. So, present value factor, 1 divided
00:56:13by 1 plus i. This way, 10 percent is 1 divided by 1.1 equal equal. 5 percent is 1 divided
00:56:22by 1.05. That is how you can get the value for adjusting the interest component here.
00:56:30So the another method, we have one more method called capitalization method, capitalization
00:56:36method. So, we have seen all these methods. Average method, simple average profit method,
00:56:46greater average profit method and empty basis, super profit capitalization basis. Now, capitalization
00:56:59basis is not, real logic is not, super profit is not. Now, what do you say? In the super profit
00:57:09capitalization method, start to adjust the interest value factor, how to put capitalization
00:57:16through. 15 percent, interest value factor, you have 15 percent, or you have 15 percent
00:57:20that is not. Not. Not. You have super profit. It is not. If you put capitalization capital,
00:57:29Sell that discussed. Sir, if you have a super profit, you will be able to get a good bill.
00:57:3725 x 100 x 115? 167? Okay. 167,000, you will be able to get a good bill.
00:57:54Capitalization. Capital required for earning, that super profit is called capitalization method.
00:58:01Illustration on this book. This example. Before we start with the illustration number 1, we will finish off this example.
00:58:15Now, the net tangible assets of the firm 4,10,000 without the capital implied. And then the average profit of the last 4 years, 60,000.
00:58:30After last 4 years, so raise the pinch to naka, may be future maintainable profit or expected profit.
00:58:35Find out the value of the good bill under capitalization method if the reasonable return being 12%.
00:58:40What is the super profit contribution? Expected profit, otherwise future maintainable profit in this case being 60,000 rupees minus normal profit capital implied into normal rate of return.
00:58:58capital implied on the 4,10, normal rate of return being 12%.
00:59:05You are aware that? 49.2.
00:59:0749.2.
00:59:0849.2.
00:59:09What is your super profit?
00:59:1110.8.
00:59:12Now, what about the capitalization rate?
00:59:17capitalization rate? 12% am I right?
00:59:22Now, what about the good bill?
00:59:24Super profit divided by capitalization rate.
00:59:2910.8 divided by 12% what is the value of the?
00:59:369,90,000 rupees.
00:59:3790,000 rupees.
00:59:3890,000 rupees.
00:59:39This is the method.
00:59:40This is the method.
00:59:41This is the method.
00:59:42This is the method.
00:59:43Future maintainable profit or expected profit divided by capitalization rate.
00:59:45The other method.
00:59:46Now, what about the.
00:59:47You understand the method.
00:59:48Future maintainable profit?
00:59:49or expected profit divided by capitalization rate?
00:59:51What is the method?
00:59:52The method is the method.
00:59:53Future maintainable profit or expected profit divided by capitalization rate.
01:00:01What is the value of the?
01:00:06What about your capital employed?
01:00:19What about your capital employed?
01:00:23What about your capital?
01:00:44I hope we have seen all the 5 models.
01:01:07Now, we will see the illustration here.
01:01:12Okay, come on, try the illustration number 1 with me.
01:01:29Concepts teach many times.
01:01:32Except I think,
01:01:35Weighted average is 4 models in the sum of products.
01:01:38Illustration number 1.
01:01:40One basic illustration where you have to understand all the 4 models here.
01:01:45Hmm, come on.
01:01:46Try to get the answer.
01:01:48Okay.
01:01:50Try to get the answer under all the methods.
01:02:07Now, Lee and Lawson are in equal partnership.
01:02:14They agreed to take Hicks as one fourth partner for, for this it was decided to find out the value of the goodwill.
01:02:21Mrs. Lee and Lawson earned the profits during this period.
01:02:28Weighted average and simple average at this time.
01:02:29Then
01:02:47If we want the alcance of the average,
01:02:48When we have trend, either profit showing increasing trend or decreasing trend, then
01:02:55you can use the weighted average price method, weighted average profit method, simple average
01:03:04method and you follow up on it now.
01:03:06So here 2019, 2022, it shows a trend of increasing weighted average method follow up on the better
01:03:13if nothing stated.
01:03:15And the 4 will be the highest weightage will be given to the latest profit here 3, 2, 1.
01:03:24Profit is the weights, multiply this, so you will get weighted profit 120, 250, 390, 60,
01:03:33600.
01:03:34Total of weight being 10 and total of weightage profit being, come on, 1360.
01:03:44Now weighted average profit being, summation of weighted profit divided by summation of
01:03:51weights, okay.
01:03:531360 by 10, 136 and capital implied, years of purchase, we assume that year of purchase
01:04:06being 3 years.
01:04:11then goodwill is equivalent to, you have to multiply these two.
01:04:17408,000 is the answer, 408,000 is the answer.
01:04:25Now super profit method, super profit method, future maintainable profit develop, we assume
01:04:39this 136 could be the expected profit to be maintained in the future, minus normal profit, adhaudhu capital
01:04:46capital employed into normal rate of return, capital employed into 5 lakhs, normal rate of return
01:04:52being 20 percentage.
01:04:54So 100,000, 36 will be your super profit.
01:05:03Number of years of purchase being 3, then your goodwill being, multiply these two to get this
01:05:11value.
01:05:12So this is not the question mentioned, but solution discusses when it comes in the future.
01:05:18Example on the future.
01:05:19Example on the future.
01:05:20Example on the future.
01:05:21Example on the future will be available.
01:05:22No need to worry about that.
01:05:23So super profit method is over.
01:05:26Now in case of capitalization method, under capitalization method, super profit divided by normal rate of return.
01:05:39This is how goodwill is calculated.
01:05:41Super profit being 36,000, normal rate of return being 20 percentage, divided by 20 percentage,
01:05:495 times 180,000 rupees, 180,000 rupees.
01:05:55Now what happens in case of annuity method, sir?
01:05:59Annuity method, let me kind of take a look.
01:06:05Okay.
01:06:06Goodwill is equal to super profit into annuity factor.
01:06:14Super profit on the 36,000, now you have to find out the annuity factor at the rate of
01:06:1920 percentage.
01:06:204 years, sir.
01:06:21And then also 3 years, 3 years, so the annuity factor is going to begin.
01:06:29So if you are going to be being a 1 divided by 1.2, year 1, memory plus year 2, memory plus
01:06:38year 3, memory plus, memory receive 2.1065, 2.1065.
01:06:50Now if I multiply the full value, then this value being 75,834.
01:06:54So if you are going to be able to take a look at this example, I will give you a short cut
01:07:00now.
01:07:01Right.
01:07:02So you got a further variant and other sums, we will continue in the next class.

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