Question:
Abha & Sara capital: ₹3L, ₹2L.
Profits: ₹60k, ₹90k, ₹1.2L
(i) 4 years purchase of avg. profits
(ii) Super profit capitalisation @10%
Abha & Sara capital: ₹3L, ₹2L.
Profits: ₹60k, ₹90k, ₹1.2L
(i) 4 years purchase of avg. profits
(ii) Super profit capitalisation @10%
Profits: ₹60k, ₹90k, ₹1.2L
(i) 4 years purchase of avg. profits
(ii) Super profit capitalisation @10%
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Super Profit = Avg Profit – Normal Profit
Updated On: Jul 8, 2025
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Solution and Explanation
Avg Profit = ₹90,000
(i) Goodwill = 4 × ₹90k = ₹3,60,000
(ii) Capital employed = ₹5,00,000
NRR = 10% ⇒ Normal Profit = ₹50,000
Super Profit = ₹90k – ₹50k = ₹40,000
Goodwill = ₹40k × 100 / 10 = ₹4,00,000
(i) Goodwill = 4 × ₹90k = ₹3,60,000
(ii) Capital employed = ₹5,00,000
NRR = 10% ⇒ Normal Profit = ₹50,000
Super Profit = ₹90k – ₹50k = ₹40,000
Goodwill = ₹40k × 100 / 10 = ₹4,00,000
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