Question

Admission of a Partner
9. A firm has earned 3,00,000 as average profit for the last few years. Normal
rate of return in the class of business is 15%. Find out goodwill according to
Capitalisation of Super profit, if the value of net assets amounted to 16,00,000.​

Answer 1

Answer:yes

Explanation:

Super profit = average profit-normal profit

= 300000-(1600000*15/100)= 60000₹

Goodwill under capitalisation of super profit= 60000*100/15= 400000₹