What will be the value of goodwill by four years' purchase of super profits , if the firm's average profits are Rs. 70,000 ? Abnormal profit being Rs. 5000. The normal profits are Rs. 55,000. PLEASE ANSWER CORRECTLY.
Answers
Answered by
2
Explanation:
profit = 70000-5000
=65000
normal return = 550000*10/100
=55000
super profit = average profit - super profit
= 65000-55000
=10000
goodwill = super profit * no of years
=10000*4
goodwill =40000
please follow me and mark my answer as a brainly
Similar questions