Question

The capital of the firm of anuj and benu is 10,00,000 and the market rate of interest is 15% annual salary to the partners is 60,000 each. The profit for the last three years were 2,80,000 , 3,80,000 and 4,20,000. Goodwill of the firm is to be valued on the basis of two years purchase of last three years average super profits. calculate the goodwill of the firm.

Answer 1

Answer:

180000

Explanation:

Goodwill=3*purchase of the last 3 years average profit

=3*90000.

=180000

Super profit= Average profit-normal profit

=240000-150000

=90000 Normal profit= rate/100*capital employed

=15/100*1000000

=150000

Average profit=280000+380000+420000-(60000*2)/ =240000