Calculate the Goodwill of the firm using the Super Profit method: A firm earned Net profit during the last 3 years as: Year Profit Required: 2018-19 ● 37,000 2019-20 40,000 The company has invested Rs. 140 000 in its capital. 10% is a reasonable capital return given the risk involved. Determine the goodwill value using the super profit from the previous three years as a basis for the calculation. 2020-21 Calculate the Average Profit. Calculate the Super Profit Calculate the Goodwill of the organization. 44,500
Calculate the Goodwill of the firm using the Super Profit method: A firm earned Net profit during the last 3 years as: Year Profit Required: 2018-19 ● 37,000 2019-20 40,000 The company has invested Rs. 140 000 in its capital. 10% is a reasonable capital return given the risk involved. Determine the goodwill value using the super profit from the previous three years as a basis for the calculation. 2020-21 Calculate the Average Profit. Calculate the Super Profit Calculate the Goodwill of the organization. 44,500
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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