Question

Average profit of a firm Rs. 21,000
Normal Profit Rs. 18,000
Value of goodwill on the basis of 3 years purchases of super profit shall be-

Answer 1

hope my answer helps you...

Answer 2

Answer:

Goodwill = 9,000

Explanation:

Given:

Average profit = 21,000

Normal Profit = 18,000

Find:

Goodwill

Computation:

Super profit = Average profit - Normal Profit

Super profit = 21,000 - 18,000

Super profit = 3,000

Goodwill = Super profit × 3

Goodwill = 3,000 × 3

Goodwill = 9,000