Question

56/ The capital employed by a firm is 4,00,000. The annual profit of firm is 70,500 including 10,500
received as compensation. The money could be invested in the bank for 5 years at the rate of 10% per
annum.
Considering 2% as fair compensation for the risk involved in the firm, compute Goodwill of the firm on
the basis of capitalisation of super profit.​

Answer 1

Answer:

the capital employed by a firm is rs 3,00,000 the annual profit of the firm is rs 60,000 including rs 9,600 received as compensation the money could be invested in the bank for 5 years @ 10%p.a. considering 2% as fair compensation for the risk compute goodwill of the firm on the basis of capitalizing of super profit.