Question

goodwill as per annuity method

(i) Capital employed Rs. 50,000

(ii) Normal rate of return : 10%

(iii) Profits of the years 2016, 2017 and 2018 were

Rs. 13,000, Rs. 15,000 and Rs. 17,000 respectively.

(iv) The present value of annuity of Re. 1 for 3 years at

10% is Rs. 2.4868
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Answer 1

Answer:

(iii) Profits of the years 2016, 2017 and 2018 were Rs. 13,000 , Re 15,000 and Rs.17,000 respectively.