Consider the given steps of calculating the Value of Goodwill on the Basis of Capitalization of Super Profit and arrange them in correct sequence.
(A) Calculation of Super Profits
(B) Calculation of Capital Employed/Net Assets
(C) Calculation of Normal Profits and Average Profits
(D) Calculation of Capitalized value of Super Profit
Choose the correct sequence of the above steps from the options given below:
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → (B), (C), (A), (D)
Under the capitalisation of super profits method, the steps run in this order:
(B) Calculation of Capital Employed/Net Assets
(C) Calculation of Normal Profits and Average Profits
(A) Calculation of Super Profits
(D) Calculation of Capitalized value of Super Profit
NCERT (2026-27 edition):
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