calculation of goodwill


  • average capital employed in the business is rs700000

  • net trading results of the firm for the past year profit 2009- 147600 , loss 2010- rs148100 ,profit 2011- rs448700

  • rate of intrest expected from capital having regard to the risk involved 18./.

  • remuneration to each partner for his service rs500 per month

find value of goodwill on the basis of last three year profits, of a firm of gupta

(a) by average profit method

(b) by super profit method

(c) by capitalization of average profit method

(d) by capitalization of super profit method

asked Jul 18, 2016 in Partnership-Fundamentals by sachi (14 points) 243 views

1 Answer

0 votes
Dear Sachi, your question has already been answered at the link given below:
answered Jul 18, 2016 by jbsclasses (3,971 points)