InterviewSolution
| 1. |
Capital of the firm of Sharma and Verma is ₹ 2,00,000 and the market rate of interest is 15%. Annual salary to partners is ₹ 12,000 each. The profits for the last three years were ₹ 60,000; ₹ 72,000 and ₹ 84,000. Goodwill is to be valued at 2 years purchase of last 3 years average super profit. Calculate goodwill of the firm. |
|
Answer» n:Goodwill = SUPER Profit X Number of YEARS PURCHASE Normal Profit = Capital Investment x = 2,00, 000 x = 30, 000 Year Profit before Partners' SALARY Actual Profit Partners'Salary - = after Salary1 60,000 - 24,000 = 36,000 2 72,000 - 24,000 = 48,000 2 84,000 - 24,000 = 60,000 Average Actual Profit after Salary Partners = = =48,000 Super Profit = Average Actual Profit after Salaries - Normal Profit = 48, 000 - 30,000 =18,000 Number of years purchase = 2 Super Profit =18,000 :. Goodwill = Super Profit x Number of Years Purchase :. Goodwill = 18, 000 x 2 =36, 000 |
|