A partnership firm's Goodwill is valued at ₹2,00,000. Normal Rate of Return is 15%. Super Profit would be...........
Answer & explanation
Correct answer: option 1
The correct answer is option 1- ₹30,000.
Goodwill = Super Profit x 100 / Normal rate of return
Super Profit = Goodwill X (Normal rate of return/100)
= 2,00,000 x 15 /100
= 30,000