Question

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 ?
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Class = 12
Chapter = 2
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Answer 1

Given :

• Capital employed = ₹ 2,00,000
• Actual profit = 48,000
• Normal rate of return = 15%

To find :

• Calculate goodwill on the basis of 3 years purchase of super profit.

Answer :

$\dag \: \underline{ \boxed{ \sf{ \purple{Normal \: profit }}}} \: \dag$

$\tt \: \frac{Capital \: \: Employed × Normal \: \: rate \: \: of \: \: return}{100}$

$\purple \implies \tt \frac{2,00,000 × 15}{100}$

$\red{ \boxed{ \tt₹ \: 30,000}}$

$\dag \: \underline{ \boxed{ \sf{ \purple{Super \: Profit}}}} \: \dag$

$\tt \: Actual \: Profit - Normal \: Profit$

$\purple \implies \ \tt48,000 - 30,000$

$\pink{\boxed{{ \sf ₹18,000}}}$

$\dag \: \underline{ \boxed{ \sf{ \purple{Good \: will }}}} \: \dag$

$\tt \: Super \: Profit × Number \: of \: years \: purchase$

$\purple \implies \tt18,000 × 3$

$\blue{\boxed{ \tt ₹ \: 54,000}}$

Answer 2

Answer:

Goodwill = Rs. 54,000

Explanation:

Given :

• Capital employed = Rs.2,00,000
• The Normal Rate of Return = 15%
• The firm earned a profit = Rs.48,000
• 3 years purchase of Super Profit

To find :

• Value of Goodwill

Solution :

★ Goodwill = Super Profit × number of year purchased

Normal Profit = Capital Employed × Normal Rate of Return / 100

⇒ 2,00,000 × 15/100

⇒ 30,000

Normal Profit = Rs. 30,000

Super Profit = Profit earned - Normal Profit

⇒ 48,000 - 30,000

⇒ 18,000

Super Profit = Rs. 18,000

Goodwill = Super Profit × number of year purchased

⇒ 18,000 × 3

⇒ 54,000

Goodwill = Rs. 54,000

Therefore, Goodwill = Rs. 54,000