Question

A firm earned a profit of rs. 40,000 on the capital of 3,00,000
Normal rate of return is 10% Calculate the value of goodwill
at three years purchased of sugar profit ​

Answer 1

Answer:

therefore the answer is

72000*3

= 2,16,000

hope it helps you mark ME as BRAINLIEST follow ME back please don't forget follow me please

Answer 2

Given:

• The profit of a firm is Rs 40,000.
• The capital is Rs 3,00,000.
• NRR [Normal Rate of Return] is 10%.
• The goodwill is to be valued at 3 years' purchase of the super profit.

To find: The value of goodwill.

Answer:

Average profit = Total profit ÷ Number of years

Since the profit of only 1 year is given, i.e., Rs 40,000, it will be considered as the average profit.

Average profit = Rs 40,000

Normal profit = Capital employed × (NRR ÷ 100)

Normal profit = Rs 3,00,000 × (10 ÷ 100)

Normal profit = R 30,000

Super profit = Average profit - Normal profit

Super profit = Rs 40,000 - Rs 30,000

Super profit = Rs 10,000

Goodwill = Super profit × Number of years' purchase

Goodwill = Rs 10,000 × 3

Goodwill = Rs 30,000

Therefore, the goodwill is Rs 30,000.