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

Question

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

Team Careers360 · Accepted Answer

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.

Exams

Colleges

Predictors

Resources

Quick links

B.Tech CompanionUse Now Your one-stop Counselling package for JEE Main, JEE Advanced and BITSAT

Exams

Colleges & Courses

Predictors

Resources

Exams

Colleges

Predictors & E-Books

Resources

Engineering Preparation

Medical Preparation

Online Courses

Products

Exams

Colleges

Resources

Exams

Colleges

Predictors & Articles

Resources

Exams

Colleges

Predictors

Resources

NEET CompanionUse NowYour one-stop Counselling package for NEET, AIIMS and JIPMER

Exams

Colleges

Upcoming Events

Resources

Exams

Colleges

Resources

Quick Links

Top Streams

Specializations

Resources

Top Providers

Exams

Colleges

Resources

Diploma Colleges

Exams

Colleges

Resources

Exams

Resources

Top Courses & Careers

Colleges

Exams

Upcoming Events

Resources

Other Exams

Exams

Colleges

Top Countries

Student Visas

Exams

Top Schools

Products & Resources

NCERT Study Material

Question : The Formula for Capitalisation of Super Profit Method is:Option 1: Super Profit X No. of years PurchaseOption 2: Super Profit X 100/Normal rate of returnOption 3: (Super Profit - Normal Profit) 100 / Normal Rate of ReturnOption 4: None of the above

Related Questions

Question : Under the super profit method, goodwill is calculated by

Question : The colour of the eye depends upon the pigment present in:

Question : The concentration of which of the following decreases anaemia?

Question : The enzymes are basically;

Question : How many bones are there in the human body?

Trending Articles/News

Sign In/Sign Up

Download the Careers360 App on your Android phone

B.Tech CompanionUse Now
Your one-stop Counselling package for JEE Main, JEE Advanced and BITSAT

NEET CompanionUse Now
Your one-stop Counselling package for NEET, AIIMS and JIPMER

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

Question :
The colour of the eye depends upon the pigment present in:

Question :
The concentration of which of the following decreases anaemia?

Question :
The enzymes are basically;

Question :
How many bones are there in the human body?