Average net profit expected in future by XYZ firm is 36 000 per year Average capital employed in the......

Average net profit expected in future by XYZ firm is 36,000 per year. Average capital employed in the business by the firm is 2,00,000. The normal rate of return from capital invested in this class of business is 10%. Remuneration of the partners is estimated to be 6,000 p.a. Calculate the value of goodwill on the basis of two years' purchase of super profit.

By: NIHARIKA WALIA