The actual profits of the firm are ₹ 35,000. The normal rate of return is 10% per annum. The average capital employed is ₹ 2,50,000. What is the amount of goodwill as per capitalization of profit ?
CS Executive · Corporate and Management Accounting · PYQS · December 2024
The actual profits of the firm are ₹ 35,000. The normal rate of return is 10% per annum. The average capital employed is ₹ 2,50,000. What is the amount of goodwill as per capitalization of profit ?
Answer & Explanation:
Correct Answer: Option (C)
Official answer key: (C).
Topics: Valuation
Related Questions in this Topic
- The following information is given: Profit after tax ₹ 1,10,000 10% Preference shares of ₹ 100 each. ₹ 1,00,000 Equity s...
- Business valuation is the process of determining the 'Economic Worth' of the company based on its business model under c...
- As per the valuation under SEBI (Substantial Acquisition of Shares and takeover) Regulation, 2011, traded turnover of th...
- Fair value of shares can be calculated by using the formula:
- ABC Ltd. whose shareholder's equity amounts to ₹ 10,00,000. The company owns 4,000 preferred shares and 1,50,000 common ...