Capital employed in a business is Rs. 2,00,000. The normal rate of return on capital employed is 15%. During the year 2015 the firm earned a profit of Rs. 48,000. Calculate goodwill on the basis of 3 years purchase of super profit?
Answers
Answered by
16
Answer:
Normal profit = 200000*15%
=30000
Super profit = profit earned - normal profit
= 48000-30000
= 18000
Goodwill =18000*3
= 54000
Answered by
8
Answer:
Rs. 54,000.
Explanation:
Capital employed in a business = Rs. 2,00,000 (Given)
Rate of return on capital employed = 15% (Given)
Super Profit = Actual Profit - Estimated profit
Goodwill = Super profit × Number of purchase years
Normal profit = 200000 × 15 /100
= 30,000
Super profit = profit earned - normal profit
= 48,000 - 30,000
= 18,000
Goodwill = 18,000 × 3
= 54,000
Thus, goodwill on the basis of 3 years purchase of super profit will be Rs. 54,000.
Similar questions