Under Super Profit Method, Goodwill =

None of the above

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Total weighted Profit X Total weights.

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No. of years / Super Profit

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No. of years x Super Profit

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Solution

The correct option is D
No. of years x Super Profit

Goodwill= Super Profit * No. of years of purchase

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Similar questions

Q. As per super profit method goodwill = ____________.

Q. Under super profit basis, goodwill is calculated by:

Under which method, goodwill is calculated by dividing super profits with normal rate of return

Q. If normal profit is

R s .50000

, average profit is

R s .75000

than calculate Goodwill for

2

years of purchase under super profit method_______.

Under this method of calculating goodwill, we calculate the super profits and then assess the capital needed for earning such super profits on the basis of normal rate of return. This method is___

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Under Super Profit Method, Goodwill =

The correct option is D No. of years x Super Profit Goodwill= Super Profit * No. of years of purchase

The correct option is D
No. of years x Super Profit

Goodwill= Super Profit * No. of years of purchase