A firm earns a profit of ₹ 2,50,000. The Normal Rate of Return in a similar type of business is 10%. The value of a total asset (excluding goodwill) and total outsider’s liabilities as on the date of valuation of goodwill are ₹ 27,50,000 and ₹ 7,00,000 respectively.

Calculate the value of goodwill by adopting the Capitalisation of the Super Profit Method.

Anurag Pathak Changed status to publish April 19, 2023