A firm earns Rs.10,000 as its normal profits. The rate of normal return being 10%. + from the following find out the value of goodwill.

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) Rs.28,000

C

52000  is the correct answer .........