Question

Account important question class 12 scanner ​

Answer 1

First calculate Normal profit -

NORMAL PROFIT = Capital employed × Normal profit

* capital employed = asset - liabilities

= 2200000-560,000= 1640000

* Normal profit = 1640000×10/100

= 164000

Super Profit = Average profit - normal Profit

= 6,00,000 - 164000= 436000

Goodwill = Super PROFIT × No. of year purchase

= 436000× 5/2

= 10,90,000