• . Average capital employed
14,00,000. Net profit 2011 2,50,000
2012 1,00,000 (loss) 2013 4,50,000 NRR
10% Goodwill at 3 years' purchase of
super profit will be
Answers
Explanation:
Average profit = Total Trade profits/ Number of
years profits
= 250000+ 450000 - 100000/5
= 700000-100000/5
= 600000/5
= Rs. 1,20,000
Normal profit = Avg capital employed X Normal
Rate of return
= 14,00,000 X 10/100
= Rs. 1,40,000
Note : we are not calculated super profit because the excess of normal profit over Avg profit
super profit = Avg profit - super profit
= 120000 - 140000
= - 20,000
Answer:
1,80,000
Explanation:
average profit ,= total proit /no of years