The Formula for valuing goodwill under the Capitalisation of Super Profit Method is:
The Formula for valuing goodwill under the Capitalisation of Super Profit Method is:
a) Super profit made by the firm multiplied by the Normal Rate of Return
b) Capital Employed by the firm multiplied by the Normal Rate of Return
c) Capitalised Profit of the firm divided by the Rate of Return
d) Super Profit of the firm divided by the Normal Rate of Return
Anurag Pathak Changed status to publish April 16, 2023
Ans – d)
Explanation:-
The formula of calculating goodwill by Capitalization of super profit method:
Goodwill = Supre Profit of the firm/ Normal Rate of Return
Anurag Pathak Changed status to publish April 16, 2023
