Loading Tutorstips...
✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Question 15 Chapter 3 of +2-Part-1
15. (Capitalisation Method) The average net profits expected in future by Ram Gopal and Sons are Rs.25,000 per year. The average capital employed in the business by the firm is Rs.1,80,000. The normal rate of return on the capital employed in similar business is 10%. Calculate the goodwill of the firm by the capitalization of the average method.
| Capitalised value of the business | = | Average Profit | X | 100 |
| Normal Rate of Return | ||||
| = | 25,000 | X | 100 | |
| 10 | ||||
| = | 2,50,000 |
| Goodwill | = | Capitalised value of the business - Average Capital Employed |
| = | 2,50,000- 1,80,000 | |
| = | 70,000 |
Thanks, Please Like and share with your friends
Comment if you have any questions.
Accounting & Commerce Educator
Sarbjit Singh holds a B.Com and M.Com degree and has over 12 years of teaching experience in double entry bookkeeping, financial accounting, and business studies.
This guide covers "Question 15 Chapter 3 of +2 Part-1 - USHA Publication 12 Class Part - 1", focusing on key definitions, step-by-step concepts, applications, and revision guidelines relevant to USHA Publication +2 Part 1.
It is primarily curated for Class 11 and Class 12 high school commerce, accounting, and economics students, as well as aspirants preparing for board exams or CA Foundation.
You can take our custom-built interactive practice quiz directly on this page to test your understanding of "Question 15 Chapter 3 of +2 Part-1 - USHA Publication 12 Class Part - 1" instantly.
