Question :
The Formula for Capitalisation of Super Profit Method is:
Option 1: Super Profit X No. of years Purchase
Option 2: Super Profit X 100/Normal rate of return
Option 3: (Super Profit - Normal Profit) 100 / Normal Rate of Return
Option 4: None of the above
Correct Answer: Super Profit X 100/Normal rate of return
Solution : Under capitalisation of super profit method: 1. Normal Profit = Capital employed X Normal rate of return 2. Super Profit = Average Profit - Normal Profit 3. Goodwill = Super Profit X 100/Normal rate of return. Hence, the correct option is 2.
Question : Under the super profit method, goodwill is calculated by
The colour of the eye depends upon the pigment present in:
The concentration of which of the following decreases anaemia?
The enzymes are basically;
Question : Under which method of valuation of goodwill, normal rate of return is not considered?
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