Question

3) Average profit during the year was Rs 10,000 with N.R.R.10%.If capital employed is Rs

60,000.Calculate the value of goodwill by super profit method on the basis of 4 years of
purchase.

plzzz answer the question fast​

Answer 1

Answer:

Therefore Goodwill is 16,000.

Explanation:

A/P = 10,000

C. E = 60,000

N/P = C.E × Rate / 100

= 60,000 × 10/100

= 6,000

S/P = A/P - N/P

= 10,000 - 6,000

= 4,000

G/w = S/P × No. of years purchase

= 4,000 × 4

= 16,000