(Capitalisation of super profits). A firm having the assets of $ 5,00,000 and liabilities of $ 2,10,000 earns the annual profits of $ 45,000. The rate of norma profit being 15%. Calculate the amount of Goodwill by capitalisation of super profits method

(Capitalisation of super profits). A firm having the assets of $ 5,00,000 and liabilities of $ 2,10,000 earns the annual profits of $ 45,000. The rate of norma profit being 15%. Calculate the amount of Goodwill by capitalisation of super profits method

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

(Capitalisation of super profits). A firm having the assets of $ 5,00,000 and
liabilities of $ 2,10,000 earns the annual profits of $ 45,000. The rate of normal
profit being 15%. Calculate the amount of Goodwill by capitalisation of super
profits method.

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