partnership firm earned net profit during the last 3 years 2013-190000,2014-220000,2015-250000 the capital employ in firm through out the above mentioned period has been 400000 having regard to rist the involve 50% is considerd to befair return on the capital the remuneration of all the partner during this period is estimated be 100000 per annum.find the following(1) calculate the value of goodwill first 2 year perchase of super profit earned on average basis during the above mention 3 year.
suhanigoyal49:
Plzzz tell me one thing in this question what is normal rate of return
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Answers
Answered by
16
Calculation of goodwill
Total profit for 3 years :
190000+220000+250000
-------------------------------------- = 220000
3
Less remuneration = (100000)
------------
Average profit 1,20,000
Average capital
Closing capital 400000
Less current year profit. ( 125000)
275000
Normal profit 275000×50% = 137500
Super profit =
Total profit for 3 years :
190000+220000+250000
-------------------------------------- = 220000
3
Less remuneration = (100000)
------------
Average profit 1,20,000
Average capital
Closing capital 400000
Less current year profit. ( 125000)
275000
Normal profit 275000×50% = 137500
Super profit =
Answered by
3
Answer
To find noraml profit=
Capital employed × rate of return
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