Use app×
Join Bloom Tuition
One on One Online Tuition
JEE MAIN 2025 Foundation Course
NEET 2025 Foundation Course
CLASS 12 FOUNDATION COURSE
CLASS 10 FOUNDATION COURSE
CLASS 9 FOUNDATION COURSE
CLASS 8 FOUNDATION COURSE
0 votes
3.9k views
in Accounts by (57.7k points)

Capital of the firm of Sharma and Verma is Rs. 2,00,000 and the market rate of interest is 15%. Annual salary to partners is Rs. 12,000 each. The profits for the last three years were Rs. 60,000; Rs 72,000 and Rs. 84,000. Goodwill is to be valued at 2 years purchase of last 3 years average super profit. Calculate goodwill of the firm. 

1 Answer

+1 vote
by (55.7k points)
selected by
 
Best answer

Super profit = Average Actual profit after Salaries - Normal profit

Welcome to Sarthaks eConnect: A unique platform where students can interact with teachers/experts/students to get solutions to their queries. Students (upto class 10+2) preparing for All Government Exams, CBSE Board Exam, ICSE Board Exam, State Board Exam, JEE (Mains+Advance) and NEET can ask questions from any subject and get quick answers by subject teachers/ experts/mentors/students.

Categories

...