Published on August 5, 2014
Que1. The average net profit of XYZ expected in the future are ` 54,000 per year. The average capital employed in the business is ` 3,00,000. The rate of interest expected from capital invested in this class of business is 10%. The remuneration of the partners is estimated to be ` 9,000 p.a. Find out the value of goodwill on the basis of two years’ purchase of super profit.