Question

The average profit of a firm was 10,000. The normal profit on
capital invested in such a business is 10% p.a. the net capital
invested in the business is * 70,000. Calculate the value of
goodwill on the basis of three year purchased of super profit.​

Answer 1

Answer:

9000Rs

Explanation:

normal profit =capital × rate% ÷ 100

np = 70000× 10÷100

7000

super profit= average Profit - normal profit

10000 - 7000

3000

goodwill= super profit × no. of

purchase year

3000× 3

ANS:- 9000