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Ideal Marketing earned an average profit...

Ideal Marketing earned an average profit of Rs. 4,00,000 during the last five years. Normal rate of return on capital employed is `10%`. Balance Sheet of the firm as at 31st March, 2019 was as follows:

Calculate the value fo goodwill, if it si valued at three years' purchase of Super Profits.

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The correct Answer is:
Capital Employed - Rs. 16,40,000; Normal Profit - Rs. 1,64,000;
Super Profit - Rs. 2,36,000; Goodwill - Rs. 7,08,000.
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TS GREWAL-GOODWILL: NATURE AND VALUATION-Exercise
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  2. A partnership firm earned net profits during the past three years as f...

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  3. Ideal Marketing earned an average profit of Rs. 4,00,000 during the la...

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  4. Varuna and Karuna are partners for equal shares. They admit Lata into ...

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  5. A business has earned average profit of Rs. 8,00,000 during the last f...

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  6. Capital of the firm fo Sharma and Verma is Rs. 2,00,000 and the market...

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  7. Supreet and Subham are equal partners. They decide to admit for 1/3rd ...

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  8. On 1st April, 2019, an existing firm had assets of Rs. 75,000 includi...

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  9. Average profit earned by a firm is Rs. 1,00,000 which includes underv...

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  10. Average profit earned by a firm is Rs. 7,50,000 which includes underv...

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  11. Ayub and Amit are partners in a firm and they admit Jaspal into partne...

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  12. From the following information, calculate value of goodwill of the fir...

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  13. A business has earned average profit of 1,00,000 during the last few y...

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  14. From the following particulars, calculate value of goodwill of a firm ...

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  15. A business has earned average profit fo Rs. 4,00,000 during the last f...

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  16. A firm earns profit of Rs. 5,00,000. Normal Rate of Return in a Simila...

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  17. On 1st April, 2018, a firm had assets of Rs. 1,00,000 excluding stock ...

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  18. Average profit of the firm is Rs. 2,00,000. Total assets of the firm a...

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  19. Rajan and Rajani ar partners in a firm. Their capitals were Rajan Rs. ...

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  20. Average profit of GS & Co. is Rs. 50,000 per year. Average capital emp...

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