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A firmed earn average profit 3,00,000 …

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A firmed earn average profit 3,00,000 during the last few years. The normal rate of return of industry is 15%. The assets of the business is 17,00,000 and his liability were 2,00,000. Calculate the goodwill of the firm by capitalisation of average profit.

Posted by Kaustubh Atodaria 5 years, 9 months ago

CBSE > Class 12 > Accountancy

2 answers

Tanya Dewangan 5 years, 9 months ago

It is right ans

Priya Singla 5 years, 9 months ago

Capital employed=Assets -Liabilities =1700000-200000=Rs.1500000 Capitalised value of Average profit =rs.300000×100/15 = rs.2000000 Goodwill = capitalised value of average profit-capital employed =2000000-1500000=Rs.500000

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