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Total Capial employed in the firm is Rs8...

Total Capial employed in the firm is Rs8,00,000, reasonable rate of return is `15%` and Profit for the year is Rs 12,00,000. The value of goodwill of the firm as per capitalization method would be:

A

Rs. 82,00,000

B

Rs. 12,00,000

C

Rs. 72,00,000

D

Rs. 42,00,000

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The average capital employed of a firm is Rs 4,00,000 and the normal rate of return is 15%. The average profit of the firm is Rs 80,000 per annum. If the remuneration of the partners is estimated to be Rs10,000 per annum, then on the basis of two years purchase of super-profit, the value of teh Goodwill will be:

1. The goodwill of a firm is to be worked out at three years’ purchase of the average profits of the last five years which are as follows: {:(Year,Profits(Loss)(Rs)),(2012,10000),(2013,15000),(2014,4000),(2015,(5000)),(2016,6000):} 2. The capital employed of the firm is Rs. 1,00,000 and normal rate of return is 8%, the average profits for last 5 years are Rs. 12,000 and goodwill is to be worked out at 3 years’ purchase of super profits, 3. Rama Brothers earn an average profit of Rs. 30,000 with a capital of Rs. 2,00,000. The normal rate of return in the business is 10%. Using capitalisation of super profits method work out the value the goodwill of the firm.

The net assets of a firm including fictitious assets of Rs 5,000 are Rs 85,000. The net liabilities of the firm are Rs30,000. The normal rate of return is 10% and the average profits of the firm are Rs8,000. Calculate the goodwill as per capitalisation of super profits.

A firm earned net profits durning the last seven years as follows : {:(2009,"Rs.","20,000 Profit",2010,"Rs.","70,000 Loss"),(2011,"Rs.","40,000 Loss",2012,"Rs.","2,50,000 Profit"),(2013,"Rs.","2,70,000 Profit",2014,"Rs.","3,00,000 Profit"),(2015,"Rs.","3,20,000 Profit",,,):} The Capital invested in the firm is Rs. 12,00,000. Normal rate of return in the similar type of business is 10%. Calculate the value of goodwill on the basis of 2(1)/(2) years' purchases of average super profits earned durning the above mentioned seven years.

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