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jai and mishan are partners their capital are rs. 3,00,000 and rs.2,00,000 are respectively . during the year ended 31.03.2021 the firm earned a profit of rs. 1,50,000 . assuming the normal rate of return as 20% calculate the goodwill on the basis of: 1) on the basis of 2 years purchase of super profit . 2)on the basis of capitalisation of super profit. 3)on the basis of capitalisation of average profit |
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Answer» Answer: Capital employed = 300000+200000= 500000 normal rate of return = 20% SUPER profit = Average profit - normal profit Normal profit = capital employed *normal rate of return = 500000*20/100= 100000 super profit = 150000-100000= 50000 1. Goodwill on the basis of 2 year purchase of super profit Goodwill =super profit * no.of year purchase = 50000*2= 100000 2. on the basis of capitalisation of super profit Goodwill = super profit *100/ normal rate of return = 50000*100/20= 250000 3. on the basis of capitalisation of average profit Capitalised value of average profit = average profit *100/normal rate of return = 150000*100/20= 750000 Goodwill = capitalised value of average profit - actual capital employed = 750000-500000= 250000 |
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