Question

Capital employed is 50,000 Trading Profit amounted * rs.12,200, Rs.15,000 and rs.2000 loss for 2008,
2009 and 2010 respectively. Rate of interest is 8% and the rate of risk is 2% Remuneration from
alternative employment of the proprietor is 3,600 pa. Amount of Goodwill at 3 years. purchase of
super Profit is​

Answer 1

Explanation:

hope it helps you.......

Answer 2

Answer:

Super Profit = 800

Goodwill = 2400

Explanation:

Capital Employed = 50,000

Average Profit = $\frac{12200+1500-2000}{3} = \frac{25200}{3}= 8400$

NRR= 8%

Salary/Remuneration = 3600 P.A.

NYP = 3 years

Average profit after remuneration payment = 8400 - 3600

Average profit after remuneration payment = 4800

Super Profit = Average profit - Net profit

= 4800 - (50000 x 8%)

= 4800 - 4000

Super Profit = 800

Goodwill = Super Profit x Number of years

= 800 x 3

Goodwill = 2400

Definition:

Goodwill:

• When a buyer purchases an established firm, goodwill, which is an intangible asset in accounting, is created.
• Assets that are not individually identifiable makeup goodwill.
• Regardless of whether the company plans to do so, identifiable assets that can be sold, transferred, licensed, rented, or exchanged alone or in combination with a linked contract, identifiable assets, or liability are not included in goodwill.
• Additionally, contractual rights, other legal responsibilities, and other rights and liabilities, whether they are a part of the organization or not, are not included in goodwill.

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