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Average profit earned by a firm is Rs. 8...

Average profit earned by a firm is Rs. 80,000 which includes undervaluation of stock of Rs. 8,000 on an average basis. The capital invested in the business is Rs. 8,00,000 and the normal rate fo return is `8%`.
Calculate goodwill of the firm on the basis of 7 times the super profit.

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Average profit earned by a firm is Rs. 7,50,000 which includes undervaluation of stock of Rs. 30,000 on an average basis. The capital invested in the business is Rs. 42,00,000 and the normal rate fo return is 15% . Calculate goodwill of the firm on the basis of 3 times the super profit.

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(Calculation of Average Profit). On 1st April, 2018, a firm had assets of Rs. 3,00,000 including cash of Rs. 5,000. The Partners' Capital Accounts showed a balance of Rs. 2,00,000 and the Reserve constituted the rest. If the normal rate Of return is 10% and the goodwill of the firm is valued at Rs. 2,00,000 at four years' purchase fo super profit, find the average profit of the firm.

Average net profit expected in future by XYZ firm is Rs. 36,000 per year. Average capital employed in the business by the firm is Rs. 2,00,000. The normal rate of return for capital invested in this class of business is 10% . Remuneration of the partners is estimated to be Rs. 6,000 p.a. Calculate the value of goodwill on the basis of two years' purchase of super profit.

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