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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Average profit of a firm during the last few years is ₹1,50,000. In a similar business, the normal rate of return is 10% of the capital employed. Calculate the value of goodwill by the Capitalisation of Super Profit Method if the super profits of the firm are ₹50,000. (CBSE 2020)
Goodwill = Super Profit × 100 / Normal Rate of Return = ₹50,000 × 100 / 10 = ₹5,00,000.
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 "T.S. Grewal Class 12 Chapter 2 Q.33 - Nature and Valuation of Goodwill", focusing on key definitions, step-by-step concepts, applications, and revision guidelines relevant to Chapter 2 - Nature and Valuation of Goodwill.
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.
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