Solve question number 11 asap
Solution:
Average profit = Average net profit - Remuneration
= 68000 - 8000
= Rs 60000
Normal profit = Capital x normal rate of return
= 350000 x 12%
= Rs 42000
Super Profit = Average profit - Normal profit
= 60000 - 42000
= Rs 18000
Goodwill = Super profit x No. of purchase year
= 18000 x 2
= Rs 36000
Average profit = Average net profit - Remuneration
= 68000 - 8000
= Rs 60000
Normal profit = Capital x normal rate of return
= 350000 x 12%
= Rs 42000
Super Profit = Average profit - Normal profit
= 60000 - 42000
= Rs 18000
Goodwill = Super profit x No. of purchase year
= 18000 x 2
= Rs 36000