+2 votes
in Class 12 by kratos

Rajan and Rajani are partners in a firm. Their capitals were Rajan Rs. 3,00,000; Rajani Rs.2,00,000. During the year 2017-18, the firm earned a profit of Rs. 1,50,000. Calculate the value of goodwill of the firm by capitalisation of super profit assuming that the normal rate of return is 20%.

1 Answer

+6 votes
by kratos
 
Best answer

Normal profit = Capital Employed x Normal Rate of Return

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