Normal Profit = 9,00,000 x 20% = 1,80,000.
Super Profit = 2,80,000 - 1,80,000 = 1,00,000.
Goodwill (Capitalisation of Super Profit) = Super Profit x 100 / Normal Rate of Return = 1,00,000 x 100 / 20 = 5,00,000.
If Average Capital Employed in a firm is Rs. 9,00,000 ; Average Profits Rs. 2,80,000 and Normal rate of return is 20%, then value of goodwill as per capitalisation of super profits is :
Held on 28 May 2023 · Verified 13 Jul 2026.
Rs. 1,24,000
Rs. 5,00,000
Rs. 45,00,000
Rs. 3,36,000
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