Raj brothers an average profit of 13000 with the capital of 200000 the normal rate of return in the business is 10% usually capitalisation of super profit method work out the value of goodwill of the farm
please solve this..its very important.
Attachments:
Answers
Answered by
1
i hope u understand ....
Attachments:
Answered by
0
Explanation:
Given Raj brothers an average profit of 30000 with the capital of 200000 the normal rate of return in the business is 10% usually capitalization of super profit method work out the value of goodwill of the firm
- Given,
- So the average profit is Rs 30,000
- The Capital will be Rs 2,00,000
- So we have Normal Profit = Capital x Normal Rate of return / 100
- = 2,00,000 x 10 / 100
- = Rs 20,000
- Also Super Profit = Average Profit – Normal Profit
- = 30,000 – 20,000
- = Rs 10,000
- Now we have
- Good will = Super Profit x 100 / Normal rate of return
- = 10,000 x 100 / 10
- = Rs 1,00,000
Reference link will be
https://brainly.in/question/17680744
Similar questions