Question

(AI 2015 C
Q. - The average profit earned by a firm is 95,000 which includes undervaluation
hich includes undervaluation of stock of
on an average basis. The capital invested in the business is 9,00,000 and
normal rate of return is 9%. Calculate goodwill of th
return is 9%. Calculate goodwill of the firm on the basis of 8 times the super
profit
(Delhi 2015 C)
*105 000.​

Answer 1

Explanation:

Number of years’ purchase = 3