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Class 12 Accountancy Partnership Accounts - Basic Concepts GoodwillExpert

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Capital employed is (₹2400000), average profit is (₹348000), and normal rate is (12%). What is goodwill at (4) years purchase of super profit?

Answer and explanation

Correct answer: (₹240000)

Normal profit is (2400000 \times 12%=₹288000). Super profit is (₹60000) and goodwill is (60000 \times 4=₹240000).

Related tags

Goodwill Super Profit Method Years Purchase Partnership Accounts Basic Concepts Accountancy Class 12 Mcq

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