The capital of the firm of Anuj and Benuis 10 lakh and the market rate of interest is 15%.The annual salary to the partner 60000 each the profit for the last three years work 280000 380000,420000. Goodwill of the firm is to be valued on the basis of 2 years purchase of last three years average super profit calculate the Goodwill of the firm.
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Answer:Total Profit=Rs. (280000+380000+420000)=Rs.1080000
Annual profit=Total profit/No.of years
Annual profit=Rs. (1080000/3)=Rs.360000
Normal profit =Capital×Rate/100
Normal profit=1000000×15/100=Rs.150000
Super profit=annual profit-normal profit
=Rs. (360000-150000)=Rs.210000
Goodwill=super profit ×No.of purchase year
=Rs. (210000×2)=Rs.420000.
Explanation:
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