A firm earned an average profit of ₹ 3,00,000 during the last few years. The normal rate of return of the industry is 15%. The assets of the business were ₹ 17,00,000 and its liabilities were ₹ 2,00,000.

Calculate the goodwill of the firm by Capitalisation of average profit.

[Ans.: Goodwill – ₹ 5,00,000.]

Anurag Pathak Changed status to publish April 18, 2023
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