Question

(21
The
average profit of the firm is 50,000. Its assets and
outside liabilities are ₹500,000 and ₹ 200000respectively.
The normal rate
rate of return is 10%.. Find the value of
goodwill if it is based on a
2 year's purchase of super profits

answer: goodwill 40,000 and super profit 20,000





chapter goodwill ,class 12, please ​

Answer 1

average profit =50,000

Assets =500,000

Liabilities=200000

Normal Rate =10%

Capital employed =Assets -Liabilities

=500000-200000

=300000

Normal Profit=Capital employed ×Normal rate ÷100

=300000×10÷100

=30000

Super Profit= Average Profit - Normal Profit

= 50,000-30,000

=20,000

Goodwill = Super Profit × No.of years purchased

=20,000×2

=40,000