The average profit of a firm during the last few years is ₹ 1,50,000.

In similar businesses, the normal rate of return is 10% of the capital employed.

Calculate the value of goodwill by capitalisation of the super profit method if the super profits of the firm are ₹ 50,000.

[Ans.: Goodwill – ₹ 5,00,000.]

Anurag Pathak Changed status to publish April 18, 2023