The average Profit of a firm during the last few years is ₹ 2,00,000 and the normal rate of return in a similar business is 10%. If the goodwill of the firm is ₹ 2,50,000 at 4 years’ purchase of super profit, find the capital employed by the firm.
The average Profit of a firm during the last few years is ₹ 2,00,000 and the normal rate of return in a similar business is 10%. If the goodwill of the firm is ₹ 2,50,000 at 4 years’ purchase of super profit, find the capital employed by the firm.
[Ans.: Capital Employed – ₹ 13,75,000.]
Anurag Pathak Changed status to publish April 17, 2023
