+2 votes
in Class 12 by kratos

The average profit earned by a firm is Rs. 1,00,000 which includes undervaluation of stock of Rs. 40,000 on an average basis. The capital invested in the business is Rs. 6,30,000 and the normal tare of return is 5%. Calculate goodwill of the firm on the basis of 5 time the super profit.

1 Answer

+3 votes
by kratos
 
Best answer

Average profit earned by a firm = Rs.1,00,000

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