model goodwill mdash valuation of mdash comprehensive the following particulars are 619452

Model: Goodwill—Valuation of—Comprehensive The following particulars are available in respect of the business of X Ltd:

1. Profits earned for the years:

1. Normal rate of return: 10 %
2. Capital employed: Rs.50,00,000
3. Present value of an annuity of Rs.1 for 5 years as 10% = Rs.3.78.
4. The profits included non-recurring profits on an average basis of Rs.50,000 a year.

You are required to calculate the value of goodwill:

1. As per 5 years’ purchase of super profits

1. As per capitalization of super profits method
2. As per annuity method