. The capital of the firm of Anuj and Benu is 10,00,000 and the market rate of interest is 15%. Annualsalary to the partners is 60,000 each. The profit for the last three years were * 3,00,000, 3,60,000 and4,20,000. Goodwill of the firm is to be valued on the basis of two years' purchase of last three yearsaverage super profits. Calculate the goodwill of the firm,
Answers
Answer:
1,80,000
Explanation:
capital of anuj and benu/capital employed=10,00,000
market rate/normal rate=15%
annual salary=60,000 each
net profit of last three years=3,00,000,3,60,000 and 4,20,000
no. of years purchase=2
1.average profit
annual salary=60,000 each
anuj and benu=60,000+60,000
=1,20,000
annual salary will be minus because annual salary is the normal expenses
net profit=3,00,000-1,20,000
=1,80,000
=3,60,000-1,20,000
=2,40,000
=4,20,000-1,20,000
=3,00,000
average profit=1,80,000+2,40,000+3,00,000/3
=7,20,000/3
=2,40,000
2.normal profit=capital employed×normal rate/100
=10,00,000×15/100
=1,50,000
3.super profit=average profit-normal profit
=2,40,000-1,50,000
=90,000
4.goodwill=super profit×no. of years purchase
=90,000×2
=1,80,000
Explanation:
super profit :- average profit - normal profit
average profit :- total profit/no. of product
normal profit:- capital employed × NNR
capital employed :- total assets - outsiders liabilities
