A and B are partners in a firm. The capital employed of the firm is 5,00,000 and normal rate of return is 10% per annum. Annual salary of each partner is 8,000. The average profit was 80,000 for last 10 years.
Calculate the value of goodwill by super profit capitalisation method.
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AnswerCalculate the value of goodwill by super profit capitalisation method.:
Explanation:
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