Question

New Ratio
The capital of a firm is Rs. 100000 and it earns an
average . anugh profit Rs 20000. The normal state of
profit in this type of business is 10% If goodworld be
equal to capital value of super profit calcellate the .
q the firm.
goodwiu
विद्या से यदि भगवद्भक्ति न जागृत हो तो ऐसी विद्या श्रममात्र होती है।
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Answer 1

Explanation:

Calculation of goodwill under capitalization basis:

Capital employed = Rs. 100000

Normal rate of return = 15%

Average profit = Rs. 20000

Normal value of business = Average profit/ Normal rate of return

Normal value of business = Rs. 20000/ 15%

Normal value of business = Rs. 133333

Goodwill = Normal value of business - Capital employed

Goodwill = Rs. (133333 - 100000) = Rs. 33333