Ideal Marketing earned an average profit of ₹ 4,00,000 during the last five years. Normal rate of return on capital employed is 10%. Balance Sheet of the firm as at 31st March, 2023 was as follows:
Ideal Marketing earned an average profit of ₹ 4,00,000 during the last five years. Normal rate of return on capital employed is 10%. Balance Sheet of the firm as at 31st March, 2023 was as follows:
| Liabilities | ₹ | Assets | ₹ |
| Capital A/cs:
Shyam Sunder Current A/cs: Shyam Suder Reserves Sundry Creditors Bills Payable Outstanding Expenses |
5,00,000 5,00,000 2,00,000 2,00,000 3,40,000 4,00,000 1,00,000 60,000 |
Land and Building
Furniture Investments Sundry Debtors Bills Receivable Closing Stock Cash at Bank Cash in Hand |
10,00,000 2,00,000 1,00,000 5,00,000 50,000 3,00,000 1,00,000 50,000 |
| 23,00,000 | 23,00,000 |
Calculate the value of goodwill, if it is valued at three year’s purchase of super profits.
Anurag Pathak Changed status to publish June 25, 2023
