a firm earn 3,00,000 as it's annual profit the rate of
retun being 12%. Assets and liabilities of the fion alue
announted to 36,00,ooo and 12,00.0oo. calca
too and 12,00, 0oo. Calculate
goodwill by Capitalisation method
Answers
Answered by
0
Answer:
Calculation of goodwill under capitalisation basis:
Capital employed = Rs. 800000
Rate of return = 15%
Average profit = Rs. 1200000
Normal value of business = (Average profit/ Rate of return) * 100
Normal value of business = Rs. (1200000/15) * 100
Normal value of business = Rs. 8000000
Goodwill = Normal value of business - capital employed
Goodwill = Rs. (8000000 - 800000)
Goodwill = Rs. 7200000
Answered by
0
Answer:
answer is 72000 is anwer
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