The FMP (average profits) of Mr. Vikas & Co. is Rs. 1,00,000 and Normal Profit is Rs. 78,600. Calculate the value of goodwill at 3 times on the basis of average super profit.
Answer
A. Rs. 1,78,600
B. Rs. 21,400
C. Rs. 64,200
D. Rs. 62,400
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Answer:
super profit = average profit - normal profit
= 100000+78600
=178600
A option if there is 1 year of purchase
Explanation:
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