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