The average profit earned by a firm is ₹ 2,50,000,which includes overvaluation of Closing Stock of ₹ 10,000 on an average basis. The capital invested in the business is ₹ 14,00,000 and the normal rate of return is 15%. Calculate goodwill of the firm on the basis of 4 times the super profit.
(a) 2,00,000
(b) 1,60,000
(c) 1,20,000
(d) 1,00,000
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Answer:
200000
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