Question

Exercise: 17 From the following information calculate the value of goodwill on the basis of
a) purchase of super profits for five years; b) capitalisation method and c) annuity method
Average capital employed 218,00,000/
Net trading profit of the firm for the past three years 3.22,800 2,70,100,73,37.500.
vii) Expected rate of return 12%;
iv) Proprietor salary + 36,000 per year
v) Present value of annuity of Re. 1 for 3 years at 12% is 2.402.
vi) Sundry assets of the firm 2 70,54,762 and Sundry liabilities of the firm 3,01,329
Answer: Goodwill (1) ? 2,94,000: (11) 34,89 999; (i) 1,41,238.
Illustration: 18 The following information is given​

Answer 1

sorry do not know.......... .