Question

capitalization of super profit met
20. A Business has earned an average profit of 40,000 and the normal rate of return in similar
type of business is 10%. Find out the goodwill by capitalization method assuming that the
business owns total assets, worth 3,00,000 and liabilities * 1,00 000.
[Ans. Goodwill by Average Profit and Super Profit is same =* 2,00,000]​

Answer 1

the goodwil of the business is 200000

Answer 2

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