Average profit earned by a firm is ₹ 7,50,000 which includes overvaluation of stock of ₹ 30,000 on an average basis.

The capital invested in the business is ₹ 42,00,000 and the normal rate of return is 15%.

Calculate the goodwill of the firm on the basis of 3 times the super profit.

[Ans.: Goodwill – ₹ 2,70,000.]

Anurag Pathak Changed status to publish April 18, 2023
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