the capital of a firm is rupee 40000 and its profits for the last three years averaged to 9000 assuming that 10%is the reasonable rate of return in the business find out the value of good will of capitalisation method
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0
Answer:
27500
Explanation:
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Answered by
10
Answer:
50000
Explanation:
Capitalised Value of Business = Average profit ×100 / Normal rate of Profit -- Capital Employed
Capitalised value = 9000 × 100 / 10 -( rs 40000)
= 90000
Goodwill = 90000--40000 = 50000
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