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| 1. |
If the average profits rs 300000, normal rate of return is 12%. and theamount of capital employed in rs 2200,000 then the value of goodwillunder the capitalisation method willbe? |
| Answer» VALUE of GOODWILL under Capitalisation of average Profit & Capitalisation of SUPER Profit = ₹3,00,000Explanation:Average Profit = ₹3,00,000Capital Employed = ₹22,00,000Normal rate of RETURN = 12%So, Value of goodwill under capitalisation of average profit = ₹3,00,000 × 100/12 - ₹22,00,000= ₹3,00,000Normal profit = ₹22,00,000 × 12/100 = ₹2,64,000Super Profit = ₹3,00,000 - ₹2,64,000 = ₹36,000So, Value of goodwill under capitalisation of super Profit = ₹36,000 × 100/12 = ₹3,00,000 | |