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how does one calculate goodwill by super profit method

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how does one calculate goodwill by super profit method..

Answer / nagaraj

When the actual profit is more than the expected profit or
normal profit of a firm, it is called ‘Super Profit.’ Under
this method goodwill is to be calculate of on the following
manner:

Goodwill = Super Profit x Number of Years Purchase

CAPITAL EMPLOYED = Rs. 7,30,49,249

Financial Year Product

2006-07 2,60,40,742.63
2007-08 77,77,726.00
2008-09 1,34,84,208.75
2009-10 2,83,01,883.14
TOTAL 7,56,04,560.00
(Rounded off

Average Profit = Rs. 75604560 /4 = Rs. 1,89,01,140

Normal Profit = Rs. 7,30,49,249x 10/100 = Rs. 73,04,925

Super Profit = Actual/Average Profit - Normal Profit

Super Profit = Rs. 1,89,01,140-Rs. 73,04,925= Rs.
1,15,96,215

Goodwill = Rs. 1,15,96,215 x 3 = Rs. 3,47,88,645

Is This Answer Correct ?    36 Yes 2 No

how does one calculate goodwill by super profit method..

Answer / shakir hussain

it can capsulated our work, it is small is size, we can
carry calculator to any where, it also so cheap,
you usually used in shop, or any place where a calcuation
is required,.

Is This Answer Correct ?    10 Yes 19 No

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