Question

the assets of a firm are rupees 18,00,000 and the liabilities other than capital are rupees 4,20,000. the normal rate of profit in this type is 10%. whereas the firm earn a profit rupees 2,00,000. find the value according to capitalisation method.please give the answer of this question in practical way not in theory please​

Answer 1

Answer:

Step 1: Calculation of Capital Employed:

Capital employed= 1200000

Step 2: Calculation of Normal Profit:

Normal Profit= 1200000 * [10/100]

= 120000

Step 3: Calculation of Average Profit:

Average Profit= 200000

Step 4: Calculation of Super Profit:

Super Profit= 200000- 120000

= 80000

please mark as brainliest

Answer 2

Answer:

Goodwill= ₹ 6,20,000

Explanation:

assets=18,00,000 liab. =4,20,000

capital=assets-liabilities

=18,00,000-4,20,000

=13,80,000(capital employed)

normal rate of return is 10%

firm earns a profit of ₹2,00,000

so capital employed for profit of 2,00,000 @10% should be

2,00,000×100/10 = 20,00,000

But actual capital employed is 13,80,000

So Goodwill = 20,00,000-13,80,000

= 6,20,000