The average profit of GS & Co. is ₹ 50,000 per year. The average Capital Employed in the business is ₹ 3,00,000. If the normal rate of return on capital employed is 10%. Calculate the goodwill of the firm by:
The average profit of GS & Co. is ₹ 50,000 per year.
The average Capital Employed in the business is ₹ 3,00,000. If the normal rate of return on capital employed is 10%.
Calculate the goodwill of the firm by:
(i) Super Profit Method at three year’s purchase; and
(ii) Capitalisation of Super Profit Method.
[Ans.: Goodwill – (i) ₹ 60,000; (ii) ₹ 2,00,000.]
Anurag Pathak Changed status to publish April 18, 2023
