Question

from the following details , calculated goodwill of the firm : average profit of the firm - ₹81000, capital of the firm: ₹3, 00,000 , normal rate of return -20% . calculate good will at 2 year's purchase of super profit​

Answer 1

Explanation:

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Answer 2

Explanation:

hey mate to find the goodwill of the firm..use this formula

Average profit=81,000(given)

normal profit=capital*rate of return

=3,00,000 *20/100

=60,000 remaining..

then,to find the super profit of the firm,

super profit=actual profit-normal profit

=81,000(given)-60,000

=21,000.

then,apply this formula...

Goodwill=21,000*2(no. of years)

=42,000 ans....

so,goodwill of the firm is 42,000..

hope it helps u dear ..