Accountancy, asked by priyanshurawat599, 9 months ago

The Goodwill of firm Rs 1,80,000 valued at three year's purchase of super profit. If capital employed is Rs 2,00,000 and
Normal rate of return is 10% per annum.The amount of average profit will be

Answers

Answered by thakur2020
2

Explanation:

Capital Employed = 2,00,000

Normal profit / Expected profit = 2,00,000 * 10/100

= 20,000

Super profit = Average profit — Expected profit

60,000 = Average profit — 20,000

Average profit = 80,000

Goodwill = super profit * 3

1,80,000 = SP * 3

SP = 1,80,000 / 3

SP = 60,000

So, the final answer is 80,000

& it's correct ik

Answered by hemantsuts012
1

Answer:

The super profit method is one method, among various methods, used to value the goodwill of a firm or business.

Goodwill is considered an intangible asset that is representative of non-physical items that play an important role in increasing the company's valuation in the market. It is usually considered in mergers and acquisitions.

The amount paid to the acquiring company in excess of the market value of the company is called goodwill.

Find:

We have find the average profit

Given:

The Goodwill of firm Rs 1,80,000 valued at three year's purchase of super profit. If capital employed is Rs 2,00,000 and Normal rate of return is 10% per annum

Explanation:

Goodwill = super profit x no. of year purchase

180000 = super profit x 3

super \:  profit =  \frac{180000}{3} =60000

Normal profit = capital employed x normal tere of return

normal profit =200000×10%

normal profit =20000

Super profit = average profit - normal profit

60000= Average profit - 20000

60000 + 20000 = Average profit

Average profit =80000

Hence the average profit is 80000

#SPJ3

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