Need For Valuation Of Goodwill

(Capital employed and Valuation of Goodwill when Non-trade Investments are given). Balance Sheet fo M/s Super Stores as at 31st March, 2019 was as follows: Average Profit was Rs. 1,25,000. You are to calculate goodwill at 3 years' purchase of Super Profits, if the Normal Rate of Return is 15% Of Capital Employed.

(Capital Employed and Valuation of Goodwill When Trade Investments are given). Balance Sheet of Grand Sales as at 31st March, 2019 was as follows: Average Profit of the firm for the year was Rs. 1,75,000. Calculate the value of goodwill of the firm by Super Profit Method at 2 years' purchase of Super Profit, if the Normal Rate fo Return is 20% .

Hidden Goodwill