Accountancy, asked by pvvarsha22, 2 months ago

From the following information, find out the value of goodwill by capitalisation method:
(a) Averageprofit = Rs.60,000
(b) Normal rate of return = 10%
(c)Capital employed = Rs.4,50,000

Answers

Answered by preeti733
1

Capitalisation of average profit

=60,000*100/10=6,00,000

= 6,00,000-4,50,000

= 1,50,000

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