A and B were partners in a firm with capitals of ₹ 3,00,000 and ₹ 2,00,000 respectively, The normal rate of return was 20% and the capitalised value of average profits was ₹ 7,50,000.

Calculate the goodwill of the firm by capitalisation of the average profit method.

[Ans.: Goodwill – ₹ 2,50,000.]

Anurag Pathak Changed status to publish April 18, 2023
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