Average net profit expected in future by Zee & Co. is ₹ 36,000 per year. Capital employed in the business by the firm is ₹ 2,00,000. Normal rate of return on capital in this class of business is 10%. Remuneration of the partners (Management Cost) is estimated to be ₹ 6,000 p.a. Find the value of goodwill on the basis of two year’s purchase of super profit.

Anurag Pathak Changed status to publish May 3, 2024
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