Question

A business has earned an average profit of 1,80,000 during the
last few years and the normal rate of return in similar type of
business is 10%. Find out the goodwill by capitalisation method
assuming that the firm owns total assets worth 19,50,000
including therein a goodwill of 1,50,000 and outside liabilities
worth 3,00,000.
Also show that goodwill amounts to be the same under both
average profit basis and super profit basis of capitalisation.​

Answer 1

Answer:

therein" (and any subsequent words) was ignored because we limit queries to 32 words