Question

What is the value of goodwill as per Super Profit Method. If capital employed is 12,00,000/-, normal rate of return is 10% and profit for last 7 years are : 20.000 70,000 2,70,000 3,00,000 - 40,000 3,20,000 2.50,000. On the basis of 2.5 years of purchase, after following adjustments - Abnormal loss in 1 year Rs. 5,000 ii) Abnormal gain in last year Rs. 50,000 5 iii) Management cost 10000 every year. i)​

Answer 1

Answer:

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