From the following information, find out the value of goodwill by capitalisation method:
(a) Average profit = Rs. 60,000
(b) Normal rate of return = 10%
(c) Capital employed = Rs. 4,50,000

From the following information, calculate the value of goodwill on the basis of 3 years purchase of average profits of last four years.

Year	Result	Amount Rs.
2015	Profit	5,000
2016	Profit	8,000
2017	Loss	3,000
2018	Profit	6,000

What is goodwill?

What is super profit?

What is normal rate of return?

What is Annuity?

What is meant by number of years purchase at the time of valuation of goodwill?

Why is goodwill considered as an intangible asset but not a fictitious assets?

How does the factor's 'quality of product' affect the goodwill of a firm?

How does the 'market situation' affect the value of goodwill of a firm?