A and B were partners in a firm with capitals of 3,00,000 and 2,00,000 respectively. The normal rate of return was 20% and the capitalised value of average profits was 7,50,000. Calculate goodwill of the firm by capitalisation of average profits method.
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28. A and B were partners in a firm with capitals of 3,00,000 and 2,00,000 respectively. The normal rate
of return was 20% and the capitalised value of average profits was 7,50,000. Calculate goodwill of the
firm by capitalisation of average profits method.
(CBSE 2020
(Ans: Goodwill
-2,50,000.
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