A firm earns profit of ₹ 2,00,000. Normal rate of return in the similar business is 10%. Value of total assets (excluding goodwill) and total outside liabilities as on the due of valuation of goodwill are ₹ 23,00,000 and ₹ 6,60,000 respectively. Determine the value of goodwill by:

a) Capitalisation of Super Profit Method, and

b) Capitalisation of Average Profit Method.

Anurag Pathak Changed status to publish May 4, 2024
Add a Comment