Question

super profit method (Accounts)?​

Answer 1

Super profit is the excess of average profits over normal profits. ... Normal rate of return on the capital employed is compared with the actual average profits to find out the super profits. For calculating goodwill, super profits are multiplied by the number of years of purchase.

Answer 2

HERE IS YOUR ANSWER MATE......

Super profit is the excess of average profits over normal profits. Under this method, goodwill is calculated on the basis of super profits. ... For calculating goodwill, super profits are multiplied by the number of years of purchase.

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