Advertisements
Advertisements
प्रश्न
A business has earned average profits of Rs 1,00,000 during the last few years and the normal rate of return in similar business is 10%.
Find out the value of Goodwill by
(i) Capitalisation of super profit method and
(ii) Super profit method if the goodwill is valued at 3 years purchase of super profit.
The assets of the business were Rs 10,00,000 and its external liabilities Rs 1,80,000.
Advertisements
उत्तर
(i) Capitalisation of Super Profit Method
`Goodwill= "Super Profit" /"Normal rate of Retuns"xx100`
Super Profit = Average Profit − Normal Profit
Average Profit = Rs 1,00,000
`"Normal Profit" = "Capital Employed"xx"Normal Rate of Return"/100`
Capital Employed = Assets − Liabilities
= 10,00,000 −1,80,000 = Rs 8,20,000
Normal Profit= `8,20,000xx10/100="Rs" 82,000`
Super Profit = 1,00,000 −82,000 = Rs 18,000
∴ `"Goodwill"= (18,0000)/10xx100="Rs" 1,80,000`
(ii) Super Profit Method
Goodwill = Super Profit × No. of Years of Purchase
= 18,000 × 3 = Rs 54,000
