1.

Rajan and Rajani are partners in a firm. Their capitals were Rajan ₹ 3,00,000; Rajani ₹ 2,00,000. During the year 2017-18, the firm earned a profit of ₹ 1,50,000. Calculate the value of goodwill of the firm by capitalisation of super profit assuming that the normal rate of return is 20%.

Answer»

n:Goodwill = Super PROFIT X   Super Profit = Average Profit - Normal Profit Average Profit                    = 1,50,000 (given) Normal Profit = CAPITAL EMPLOYED x Normal RATE of Return                       = (3,00,000+2,00,000) x 20%                       = 1, 00,000 Super Profit = 1,50, 000 - 1, 00, 000                     = 50,000 Goodwill = 50, 000 x = 2, 50 , 000



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