A business has earned average profit of ₹ 1,20,000 during the last four years and the normal rate of return of similar business is 15%. If goodwill of the firm is valued at ₹ 1,35,000 at 3 year’s purchase of average super profit, find the capital employed of the firm.

[Ans.: Capital Employed – ₹ 5,00,000.]

Anurag Pathak Answered question May 6, 2024
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