Question

(OR)
2. From the following particulars the
value of goodwill of a business.
a) Net profits for the last five
years Rs. 50,000., Rs. 60.000., Rs.
45,000., Rs. 55.000., Rs. 70.000
b) Capital employed Rs. 5,00.000
c) Reasonable rate of return on
capital 10%
d) Fixed Assets Rs.15.00.000
e) Current Liabilities Rs. 6.00.000
Calculate the value of Goodwill
under (a) Three years purchased of
average profits method for last five
years
(b) Two years purchased of Super
Profits based on last five average
profits​

Answer 1

Step-by-step explanation:

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Answer 2

Answer:

Let us assume that 4−5  

3

​  

 be rational  

⟹4−5  

3

​  

=  

b

a

​  

 where a,bϵZ

⟹−5  

3

​  

=  

b

a

​  

−4

⟹  

3

​  

=  

5

4

​  

−  

b

a

​  

 

L.H.S = irrational number as  

3

​  

 is a irrational number.

R.H.S = rational number

as RHS



=LHS

Hence, our assumption is wrong and 4−5  

3

​  

 is a irrational number.