If the capital of a firm is Rs. 2,00,000 and profit earned by the firm is Rs. 48,000. Match the value of goodwill, according to the super profit method of goodwill valuation at the different normal rate of return on the firm's capital on the basis of 3 years of purchase.
List-I (Value of Goodwill)
(A) Rs. 54,000
(B) Rs. 72,000
(C) Rs. 84,000
(D) Rs. 36,000
List-II (Normal Rate of Return on Capital)
(I) 12%
(II) 15%
(III) 18%
(IV) 10%
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → (A) - (II), (B) - (I), (C) - (IV), (D) - (III)
Under the super profit method, goodwill = (actual profit − normal profit) × years' purchase, where normal profit = capital × normal rate. Here capital is Rs. 2,00,000, profit Rs. 48,000 and the purchase 3 years, so each rate gives one value of goodwill. A higher normal rate means a higher normal profit and so a smaller goodwill.
(A) Rs. 54,000 — this matches (II) 15%.
Normal profit = Rs. 2,00,000 × 15% = Rs. 30,000
Super profit = Rs. 48,000 − Rs. 30,000 = Rs. 18,000
Goodwill = Rs. 18,000 × 3 = Rs. 54,000
(B) Rs. 72,000 — this matches (I) 12%.
Normal profit = Rs. 2,00,000 × 12% = Rs. 24,000
Super profit = Rs. 48,000 − Rs. 24,000 = Rs. 24,000
Goodwill = Rs. 24,000 × 3 = Rs. 72,000
(C) Rs. 84,000 — this matches (IV) 10%.
Normal profit = Rs. 2,00,000 × 10% = Rs. 20,000
Super profit = Rs. 48,000 − Rs. 20,000 = Rs. 28,000
Goodwill = Rs. 28,000 × 3 = Rs. 84,000
(D) Rs. 36,000 — this matches (III) 18%.
Normal profit = Rs. 2,00,000 × 18% = Rs. 36,000
Super profit = Rs. 48,000 − Rs. 36,000 = Rs. 12,000
Goodwill = Rs. 12,000 × 3 = Rs. 36,000
Note: This question is from NCERT (2026-27). NTA sets numerical questions from NCERT too, so do not ignore NCERT while practising numericals.
NCERT (2026-27 edition):
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