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<p> The assets of the firm amount to Rs.72,000 and liabilities to Rs.24,000. Find out the value of goodwill.</p> <p>(a) Rs.52,000</p> <p>(b) Rs.1,00,000</p> <p>(c) Rs.28,000</p> <p>(d) Nil</p>
Total assets = 10,000 /0.1 =100,000 Rs
100,000 -72,000 =28,000 Rs
So, Answer is (c) Rs.28,000.
Capitalised Value of Average Profits = Average Profits X (100 / Normal Rate of Return)
Capital Employed = Assets - Liabilities
Goodwill = Capitalised Value of Average Profits - Capital Employed
Hence Value of goodwill (a) Rs.52,000
C :28000
Total assets =100000
if assets72000
Then good will =28000
Goodwill is Future expected cash flows/benefit - net assest
Future Expected benefit or cash flow =10,000 /10% = 100,000
Net asset = total asset - current liabilities =72000 -24000 =48000
Goodwill =100,000-48000 =52000
RS28000
goodwill=super profits *no of years purchased
super profit=actual profit - normal profit
normal profit=capital invested*normal rate of return/100
capital invested ==48000
normal profit=48000*10\\100=4800
super profit==5200
goodwill=5200*1=5200
Goodwill of the firm can be52000 as per given information,
As per accounting equation, capital = Assets - Outside Liabilities, i.e. capital =, =48000,
if we capitalize the profit of10000 with the return rate of10%, we got the capital of100000,
as per this we can say that the extra capital of52000 i.e. may be a goodwill.
C
52000 is the correct answer .........