Accountancy, asked by lakshyayadav1216, 2 months ago

Q 14: Under capitalisation of super
profit method, Goodwill is equal to
O Capitalised value of super profit at
NRR
O Capitalised value of maintained
profit
0 (a) and (b)
O None of the above

Answers

Answered by kumarividya1112

2

Answer:

M/s Mehta and sons earn an average profit of rupees 60,000 with a capital of rupees 4,00,000. The normal rate of return is 10%. 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.

Answer is capitalised val5of super profit at NRR

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