Question

The capital of the firm of Annu and Benu is Rs 1,00,000 and the market rate of interest is 15%.
Annual salary of each partner is Rs 6000.The profits for the last 3 years were Rs 30,000; Rs
36,000 and Rs 42,000. Goodwill is to be valued at 2 years purchase of the last 3 years average
super profit. Calculate Goodwill.​

Answer 1

Answer:

Explanation:

Goodwill = 3 years average of  super profits

Super profit = Average profit - Normal profit

= {(30000+ 36000 +42000 ) /3 )-  12000/- as salary}  -  ( 100000 x 15/100)

=24000-15000 = 9000

Goodwill=9000 x 2 =18000

Answer 2

Given:

Capital of the Annu and Benu firm = Rs 1,00,000

Market rate of interest is 15%

Annual salary of each partner Rs 6000

Profit for the last 3 years Rs 30,000, Rs 36,000 and Rs 42,000

To find:

Goodwill ?

Solution:

For computing the goodwill first we have to determine the super profit which is shown below:

As we know that

Super profit = Average profit - normal profit

where,

Average profit is

= (Rs 30,000 + Rs 36,000 + Rs 42,000) ÷ (3 years)

= Rs 108,000 ÷ 3 years

= Rs 36,000

And, the normal profit is

= Interest on capital + partner salary

The interest on capital is

= Rs 1,00,000 × 15%

= Rs 15,000

And, the partner salary is

= 6,000 × 2 partners

= Rs 12,000

So, the normal profit is

= Rs 15,000 + Rs 12,000

= Rs 27,000

So, the super profit is

= Rs 36,000 - Rs 27,000

= Rs 9,000

Now the goodwill amount is

= Super profit × number of years purchased

= Rs 9,000 × 2 years

= Rs 18,000

Hence, the goodwill amount is Rs 18,000

Learn more

What is tha goodwill and goodwill points

https://brainly.in/question/140131

What is Goodwill what is Goodwill

https://brainly.in/question/5941151