GK Traders earned ₹ 3,60,000 during 2022. The normal rate of capitalization is 12%. The assets of the firm were ₹ 27,00,000 and liabilities were ₹ 6,00,000. The value of goodwill under capitalization method is:
CS Executive · Corporate and Management Accounting · PYQS · December 2023
GK Traders earned ₹ 3,60,000 during 2022. The normal rate of capitalization is 12%. The assets of the firm were ₹ 27,00,000 and liabilities were ₹ 6,00,000. The value of goodwill under capitalization method is:
Answer & Explanation:
Correct Answer: Option (A)
Official answer key: (A).
Topics: Financial Management
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