Question

Or
The capital invested in a firm is Rs. 40,000. It is estimated thatsuch
business yield an average of 10% P.A. The average profit for the fiv
years is Rs. 8.000. Find out the value of goodwill if it is valued at
three years purchase of the super profit method.​

Answer 1

Answer:

12,000

Explanation:

$40000 \times \frac{10}{100} = 4000(normal \: profit) \\ super \: profit=8000 - 4000 = 4000 \\ goodwill = 3 \times 4000 = 12000$