Raja Brothers earn an average profit of ₹ 30,000 with a capital of ₹ 2,00,000. The normal rate of return in the business is 10%. Using Capitalisation of super profit method. Workout the value of the goodwill of the firm.
Raja Brothers earn an average profit of ₹ 30,000 with a capital of ₹ 2,00,000.
The normal rate of return in the business is 10%. Using Capitalisation of super profit method.
Workout the value of the goodwill of the firm.
[Ans.: Goodwill – ₹ 1,00,000.]
Anurag Pathak Changed status to publish April 18, 2023