Rajan and Rajani are Partners in a Firm. Their Capitals were Rajan ₹ 3,00,000; Rajani ₹ 2,00,000 - capitalisation of super profit

Rajan and Rajani are partners in a firm. Their capitals were Rajan ₹ 3,00,000; Rajani ₹ 2,00,000. During the year 2018−19, 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%.




Goodwill = Super Profits x `"100"/"Normal Rate of Return"`

Super Profits = Average Profit – Normal Profit

Average Profit = Rs. 1,50,000 (Given)

Normal Profit = Capital Employed x Normal Rate of Return

Normal Profit

= Rs. ( 3,00,000 + 2,00,000) x 20 %

= Rs. 1,00,000

Super Profit = 1,50,000 – 1,00,000 

= Rs. 50,000

Goodwill = 50,000 x 10020 = Rs. 2,50,000. 
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