Question

The total capital of the firm of Sakshi, Mehak and Megha is * 1,00,000 and the market rate of interest is 15%. The net profits for the last 3 years were * 30,000; * 36,000 and 42,000. Goodwill is to be valued at 2 years' purchase of the last 3 years' super profits. Calculate the goodwill of the firm. [Ans.: Goodwill-42,000.)​

Answer 1

Answer:

Step 1: Calculation of normal profit:

Normal profit = Capital employed * [Normal rate of return/100]

= 100000 * [ 15/100]

= 15000

Step 2: Calculation of Average Profit:

Average Profit = [ 30000+36000+42000]/3

= 108000/3

= 36000

Step 3: Calculation of Super Profit:

Super Profit= 36000-15000

= 21000

Step 3: Calculation of Goodwill:

Goodwill= 21000* 2

= 42000

Explanation:

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Answer 2

Answer:

#SPJ2

Explanation:

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