Question

average profit of the year is 150,000 tangible assets 14 lakh outside liability 400,000 normal rate is 10%of capital employed.calculate goodwill by capitalisation of super profits method
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Answer 1

Answer:

Solution :

Capital Employed = Total Tangible Assets - Outside Liabilities <br>

= Rs. 14,00,000 - Rs. 4,00,000 = Rs. 10,00,000 <br> Normal Profit = Capital Employed

Normal Rate of Return/100 <br>

= 10,00,000

= Rs. 1,00,000 <br> Super Profit = Average Profit - Normal Profit <br>

= Rs. 1,50,000 - Rs. 1,00,000 = Rs. 50,000 <br> Goodwill