Question

Gupta and Bose had a firm in which they had invested ₹ 50,000. On an average, the profits were ₹ 16,000. The normal rate of return in the industry is 15%. Goodwill is to be valued at four years purchase of profits in excess of profits @ 15% on the money invested. Value th goodwill.

Answer 1

Explanation:

Working Notes:

Goodwill =  $Super Profit \times Number of Years Purchase$

Nornal profit = $Capital Employed \times \frac{\text { Normal Rate Return }}{100}$

$=50,000 \times \frac{15}{100}=77,500$

Actual Profit = $\mathbf{} 16,000$

Super Profit = Actual Profit - Normal Profit

=16,000-7,500=8,500

Number of years purchase =4

Super Profit =8,500

Goodwill = $Super Profit \times Number of Years Purchase$

Goodwill = $8,500 \times 4$

= 34,000

Answer 2

Answer:

may be this is helpful for you.... mark me as brainlist plzz