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The average profit earned by a …

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The average profit earned by a firm is Rs. 60,000 including abormal income of Rs. 4,000 on recurring basis. Firm had a fixed assets of Rs. 3,00,000 and current assets of Rs. 60,000. Its creditors and other liabilities were Rs. 1,40,000. Calculate Goodwill of the firm based on 3 times of super profit if the normal rate of earnings is 15% .

Posted by Ravi Bhatt 6 years, 9 months ago

CBSE > Class 12 > Accountancy

4 answers

Ravi Bhatt 6 years, 8 months ago

Mohit Goyal how total assets can 3,40,000?

Hero Time 2 years, 7 months ago

69000 GW

Hero Time 6 years, 9 months ago

Wrong answer

Mohit Goyal 6 years, 9 months ago

Average profit=60,000-4,000 =56,000 Total asset =3,00,000+40,000= 3,40,000 Liability= 1,40,000 Capital Employed=3,40,000-1,40,000=2,00,000 Normal Profit=2,00,000×15÷100=30,000 Super Profit=56,000-30,000=26,000 Goodwill=26,000×3=78,000

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