Question

65
Valuation of Goodwill and Shares
12. The profits and losses for the last years are 2011-12 losses 3 15,000, 2012-13 losses 37,500
2013-14 profits 1,03,000 and 2014-15 profits 81,000. The average capital employed in the
business is 3 2,05,000. The rate of interest expected from capital invested is 10%. The
remuneration of partners is estimated to be 1,200 per month. Calculate the value of goodwill
on the basis of two years purchase of super profits based on the average of four years.
₹
(b) 10,950
(d) 18,250
(a) 9,000
(c) 11,000
A​

Answer 1

Explanation:

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