Calculate goodwill, if it is to be calucited at 3 years' purchase of the super profit: The firm started business with a cpaital of Rs. 4,00,000. The normal rate of earning in this class of business is 15%. The firm earned Rs. 74,000 as profit during the year.

Answer rating: 100% (QA)

To calculate goodwill based on super profit we need to fo... View the full answer