.Capital employed in a business is Rs. 2,00,000. The normal rate of return on capital employed is 15%. During
the year 2002 the firm earned a profit of Rs. 48,000. Calculate goodwill on the basis of 3 years purchase of super
profit? (2
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Answer:
Average profit = 48000
Normal profit = Capital employed × NRR / 100
Normal profit = 200000 × 15 /100
Normal profit = 30000
Super profit = Average profit - Normal profit
Super profit = 48000 - 30000
Super profit = 18000
Goodwill = Super profit × No. of years purchase
Goodwill = 18000 × 3
Goodwill = 54000
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