Find the Capitalised value of the business from the following information:
Find the Capitalised value of the business from the following information:
Annual Profit = ₹ 8,00,000; Normal Rate of Return = 20%
Assets (including cash) ₹ 62,00,000; Cash ₹ 2,00,000; Outside liabilities = ₹ 10,00,000.
a) ₹ 40,00,000
b) ₹ 1,60,00,000
c) ₹ 52,00,000
d) ₹ 45,000
Anurag Pathak Changed status to publish April 19, 2023
Ans – a)
Solution:-
Total Capitalised Value of firm = Average Profit/Normal Rate of Return × 100
Total Capitalised Value of firm = 8,00,000 × 100/20 = ₹ 40,00,000
Anurag Pathak Changed status to publish April 19, 2023
