how to calculate goodwill by average super profit method
Answers
Answered by
6
Answer:
Using capitalization of super profits method calculate the value the goodwill of the firm. Ans: Goodwill = Super profits x (100/ Normal Rate of Return) = 20,000 x 100/10 = 2,00,000
Explanation:
plz mek my ans as BRAINLIEST
Answered by
2
Answer:
calculation of goodwill by average super profit method 4 steps of that are:----------
average profit = sum of all years profit/ no of years
normal profit = capital employed ×normal rate of return / 100
super profit = average profit - normal profit
goodwill = super profit × no of year purchase
Similar questions