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From the following information, find out the value of goodwill by capitalisation method: Average profit ₹ 20,000 Normal rate of return 10% Tangible assets of the firm ₹ 2,20,000 - Accountancy

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प्रश्न

From the following information, find out the value of goodwill by capitalisation method:

  1. Average profit ₹ 20,000
  2. Normal rate of return 10%
  3. Tangible assets of the firm ₹ 2,20,000
  4. Liabilities of the firm ₹ 70,000.
बेरीज
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उत्तर

Actual cap employed = Tangible Assets – Liabilities of the firm

= 2,20,000 – 70,000

= ₹ 1,50,000

Capitalised value of business = `"Average profit"/"Normal rate of return" xx 100`

= `(20,000)/10 xx 100`

= ₹ 2,00,000

Value of goodwill = Total capitalised average profit – Capital employed

= 2,00,000 – 1,50,000

= ₹ 50,000

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पाठ 4: Goodwill in partnership accounts - Exercises [पृष्ठ १३२]

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सामाचीर कलवी Accountancy [English] Class 12 TN Board
पाठ 4 Goodwill in partnership accounts
Exercises | Q IV 11. | पृष्ठ १३२
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