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From the following information, calculate the value of goodwill under the annuity method: Average profit - ₹ 14,000 Normal Profit - ₹ 4,000 - Accountancy

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प्रश्न

From the following information, calculate the value of goodwill under the annuity method:

Particulars
Average profit 14,000
Normal Profit 4,000
Normal rate of return 15%
Years of purchase of goodwill 5

Present value of ₹ 1 for 5 years at 15% per annum as per the annuity table is 3.352

बेरीज
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उत्तर

Super profit = Average profit – Normal profit

= 14,000 – ₹ 4,000

= ₹ 10,000

Goodwill = Super profit × Present value of annuity factor

= ₹ 10,000 × 3.352

= ₹ 33,520

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पाठ 4: Goodwill in partnership accounts - Exercises [पृष्ठ १३५]

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सामाचीर कलवी Accountancy [English] Class 12 TN Board
पाठ 4 Goodwill in partnership accounts
Exercises | Q IV 9. | पृष्ठ १३५
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