Question

ALLOUMBU couTL.3) The following particulars are available in respect of the business carried on by a trader:(1) Profits earned: Rs 50,000; Rs 60,000; Rs 55,000.(2) Normal rate of profit 10%(3) Average capital employed Rs 3,00,000(4) Present value of an annuity of one rupee for five years at 10% Rs 3.79.(5) The profits included non-recurring profits on an average basis of Rs 4,000 out of which itwas deemed that even non-recurring profits had a tendency of appearing at the rate ofRs 1,000 p.a.Calculate goodwill from the following methods:a) As per five years purchase of super profitsb) As per capitalization of super profit methodc) As per annuity method​

Answer 1

Answer:

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