Accountancy, asked by thara1724, 10 months ago

A firm’s profits during 2013, 2014, 2015 & 2016 were Rs.16,000; Rs.20,000; Rs.24,000 and Rs.32,000 respectively. The firm has capital investment of Rs.1,00,000. A fair rate of return on investment is 18% p.a. Compute goodwill based on 3 years purchase of the average super profits for the last 4 years.

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Answered by shoaibmartin

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