+1 vote
in Class 12 by kratos

Average profit of GS & amp Co. is Rs. 50,000 per year. Average capital employed in the business is Rs. 3,00,000. If the normal rate of return of capital employed is 10%, calculate goodwill of the firm by:

(i) Super Profit Method at three years purchase; and

(ii) Capitalisation of Super Profit Method.

1 Answer

+2 votes
by kratos
 
Best answer

Working Notes:

Calculation super profit

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