The following details are related to ABC & Co, a trading partnership entity. Find the good will using 3 years' purchase (a) average profits (b) Super profits basis. Capital employed is 600,000. Normal rate of return is 15%.

2017: 90,000, 2018 150,000; 2019 120,000, 2020 180,000

Answer rating: 100% (QA)

To calculate the goodwill of ABC Co using the average profits basis and the super profits basis we need to first determine the average profit and the ... View the full answer