Rajan and Rajani are partners in a firm. Their capitals were Rajan Rs. 3,00,000; Rajani Rs. 2,00,000. During the year 2015 the firm earned a profit of Rs. 1,50,000. Calculate the value of goodwill of the firm assuming that the normal rate of return is 20%?
Answers
Hey Mate!!
Here is ur required answer...
Average profit = 1,50,000
Normal profit = capital employed (3,00,000 + 2,00,000) × normal rate of return
= 5,00,000 × 20%
= 1,00,000
Super profit = Average profit - Normal profit
= 1,50,000 - 1,00,000
= 50,000
Goodwill = Super profit × 100/normal rate of return
= 50,000 × 100 / 20
= 2,50,000
Hope it helps u...
Answer:
goodwill 250000
Explanation:
capital employed = 300000+200000= 500000
Normal profit= capital employed× Normal rate of return /100
= 500000×20/100
=100000
Super profit = average profit- normal profit
=150000-100000
=50000
Goodwill = super profit ×100/normal rate of return
= 50000× 100/20
= 250000 .
good will = 250000