7) From the following information calculate the value of goodwill on the basis of three
years purchase of the super profit:
a. Average capital employed in the business 7,00,000
b. Net trading profit of the firm for the past three years 1,07,600; 290,700 and
31.12.500
c. Rate of interest expected from capital having regard to the risk involved 12%
d. Fair remuneration to the partner for their services 212,000 per annum
e. Sundry assets of the firm - 87,54,762
f. Sundry liabilities of the firm - 31,329
Answers
Answered by
6
Answer:
Goodwill = Average Profit x No. of Years' Purchase. = 80,000 x 3 = Rs. 2,40,000.
Goodwilll = Super Profit x No. of years' Purchase. = 20,000 x 3 = Rs. 60,000.
Goodwill = Super Profit x. = 20,000 x = Rs. 2,00,000.
Goodwill = Capitalised Value - Net Assets. = 8,00,000 - 6,00,000 = Rs. 2,00,000.
Similar questions