+1 vote
in Class 12 by kratos

A business has earned average profits of Rs. 1,00,000 during the last few years. Find out the value of goodwill by capitalisation method, given that the assets of the business are Rs. 10,00,000 and its external liabilities are Rs. 1,80,000. The normal rate of return is 10%?

1 Answer

+3 votes
by kratos
 
Best answer

= 10,00,000 - 8,20,000 = Rs.1,80,000

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