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To compute the value of goodwill on the basis of 3 years' purchase of super profits, we need to follow these steps:
1. **Calculate the normal profit**:
- The capital employed by the firm is ₹6,00,000.
- The rate of return if the money was invested in the bank is 10% per annum.
- Normal profit = Capital employed × Rate of return
\[
\text{Normal profit} = ₹6,00,000 \times 10\% = ₹60,000
\]
2. **Calculate the adjusted actual profit**:
- The annual profit of the firm is ₹1,20,000 including ₹19,200 received as compensation.
- Since compensation is a one-time receipt, it should be excluded from the profit calculation for normal operations.
\[
\text{Adjusted actual profit} = ₹1,20,000 - ₹19,200 = ₹1,00,800
\]
3. **Calculate the fair return including compensation for risk**:
- The fair return includes an additional 2% compensation for the risk involved in the firm.
- Total fair return = Normal profit + Risk compensation
\[
\text{Risk compensation} = ₹6,00,000 \times 2\% = ₹12,000
\]
\[
\text{Fair return} = ₹60,000 + ₹12,000 = ₹72,000
\]
4. **Calculate the super profit**:
- Super profit is the difference between the adjusted actual profit and the fair return.
\[
\text{Super profit} = \text{Adjusted actual profit} - \text{Fair return}
\]
\[
\text{Super profit} = ₹1,00,800 - ₹72,000 = ₹28,800
\]
5. **Calculate the value of goodwill**:
- Goodwill is calculated as the super profit multiplied by the number of years' purchase.
\[
\text{Value of goodwill} = \text{Super profit} \times \text{Number of years' purchase}
\]
\[
\text{Value of goodwill} = ₹28,800 \times 3 = ₹86,400
\]
Therefore, the value of goodwill on the basis of 3 years' purchase of super profits is **₹86,400**.
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