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A firm earns profit of Rs. 5,00,000. Nor...

A firm earns profit of Rs. 5,00,000. Normal Rate of Return in a Similar type of business is `10%`. The value of total assets (excluding goodwill) and total outsiders' liabilities as on the date of goodwill are Rs. 55,00,000 and Rs. 14,00,000 respectively. Calculate value of goodwill according to Capitalisation of Super Profit Method as well as Capitalisation of Average Profit Method.

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The correct Answer is:
Value of Goodwill - Rs. 9,00,000 in both cases.
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TS GREWAL-GOODWILL: NATURE AND VALUATION-Exercise
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  2. A business has earned average profit of Rs. 8,00,000 during the last f...

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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  19. Ajeet and Baljeet are partners in a firm. Their capitals are Rs. 9,00,...

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

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