Question

12. The average net profits expected in future by Ram Das & Co. are 20,000 per year.
The average capital employed in the business by the firm is 1,50,000. The normal
rate of return on the capital employed in similar business is 10%. Calculate goodwill
of the firm by the capitalization method.
​

Answer 1

Answer:

$06 - 110 = {030 = 3y3 { {3330 - 1 \\ 1 \\ \\ \\ \\ \\ \\ \\ = 1333 {33 \\ \\ \\ \\ \\ \\ \\ {33 = = = }^{?} \\ \\ \\ \\ \\ \\ \\ \\ \\ }^{?} }^{?} }^{?} }^{2}$

Answer 2

Calculate normal profit

${\boxed{\bf Normal \: profit = Capital \: employed \times \dfrac{Normal \: rate \: of \: return}{100}}}$

→ N.P = 1,50,000 × 10/100

→ N.P = 15,000

•°• Normal profit = Rs.15000

Calculation of super profit

★ Super profit = Average profit - Normal profit

→ S.P = 20000 - 15000

→ S.P = 5000

•°• Super profit = Rs.5000

Calculation of Goodwill under capitalisation of super profit

${\boxed{ \bf Goodwill = Super \: profit \times \dfrac{100}{Normal \: rate \: of \: return}}}$

→ Goodwill = 5000 × 100/10

→ Goodwill = Rs.50000

•°• Goodwill of the firm is Rs.50000

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