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If in the firms total capital employed is Rs 100000 and the normal rate of return is 6% the average profit for for the last 5 years is Rs 15000 and goodwill is estimated at 3 years purchase of super profits. Remuneration given to partners was Rs 2000

Accountancy

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Answer 1

Answer #1

Average profit= 15000

Remuneration to partners =2000

Average actual profit= 15000-2000=13000

Normal profit= 100000×6/100=6000

Super profit=13000-6000=7000

Goodwill=7000×3=21000

answered by: Advika

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Answer 2

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