The net profit earned by MM Ltd. during the last three years were respectively ₹ 1,70,000, ₹ 2,20,000 and ₹ 2,40,000. Capital employed is ₹ 15,00,000. If the fair return on the net capital employed is 10%, the value of g
CS Executive · Corporate and Management Accounting · PYQS · December 2023
The net profit earned by MM Ltd. during the last three years were respectively ₹ 1,70,000, ₹ 2,20,000 and ₹ 2,40,000. Capital employed is ₹ 15,00,000. If the fair return on the net capital employed is 10%, the value of goodwill on the basis of three years purchase of the average super profits of past three years is:
Answer & Explanation:
Correct Answer: Option (C)
Official answer key: (C).
Topics: Financial Management
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