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Identify the formula for calculating goodwill with the help of capitalised method of super profit.

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Question

Identify the formula for calculating goodwill with the help of capitalised method of super profit.

Options

  • Goodwill = Super Profit × No. of Years

  • Goodwill = `"Super Profit"/"Normal Rate of Return"`

  • Goodwill = Normal Profit × No. of Years ÷ Super Profit

  • Goodwill

MCQ
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Solution

Goodwill = `"Super Profit"/"Normal Rate of Return"`

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