Question

XII-ACCOUNTANCY
FEB, 2021
1. The Net Profit for 2015 of M/s Niranjan & Sons was Rs 80.000 and its capital
employed was Rs 4,00.000 The Normal rate of Return for such type of business
15% Compute the amount of goodwill if goodwill is five times of the super profit​

Answer 1

Answer:

1,00,000

Explanation:

normal profit =400000×15/100=60000

super profit=average profit - normal profit

80000- 60000=20000

goodwill =5times of super profit

5×20000=100000

Answer 2

Answer:The net profit for 2015 of M/s Niranjan & Sons was ₹80,000 and its employed capital was ₹4,00,000. The normal rate of return for such type of business is 15%. Compute the amount of goodwill if goodwill is five times of the

super profit.