Question

Q.53. The following information relates to a partnership firm:
(a) Sundry Assets of the firm 6,80,000. Outside Liabilities 260,000.
(b) Profits and losses for the past years : Profit 2013 350,000; Loss 2014 #10,000;
Profit 2015 1,64,000 and Profit 2016 81,80,000.
(c) The normal rate of return in a similar type of business is 12%.
Calculate the value of goodwill on the basis of :
(1) Three year's purchase of average profits.
(ii) Three year's purchase of super profits.
(iii) Capitalisation of average profits, and
(iv) Capitalisation of super profits.
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Answer 1

Answer:

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