Super Profit = Goodwill / Number of years' purchase = 90,000 / 3 = 30,000. Normal Profit = Capital Employed * NRR = 15,00,000 * 8% = 1,20,000. Average Profit = Normal Profit + Super Profit = 1,20,000 + 30,000 = 1,50,000.
If average capital employed in a firm is Rs. 15,00,000 and fair rate of return in the same industry was 8%. Goodwill was valued at Rs. 90,000 on the basis of three times of super profit. The Average Profit of the firm is ?
Held on 20 Jul 2022 · Verified 13 Jul 2026.
Rs. 2,50,000
Rs. 50,000
Rs. 90,000
Rs. 1,50,000
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