Accountancy, asked by Sonamsinha2610, 1 month ago

Average profit of a firm during the last few years is < 1,50,000,
in similar business, the normal rate ofretum is 10% of the capital
employed. Calculate the value of goodwill by capitalisation of super
profit method if super profits of the firm are 50,000

Answers

Answered by swastiksuman4

1

Answer:

350000

Explanation:

Super Profit is 50000.

capitalized super profit is 50000 * 100/10 = 500000

so goodwill = 500000-150000 = 350000

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