The total capital employed in the firm is ₹ 15,00,000. The Normal Rate of return is 12% and the profit for the year is ₹ 1,50,000. Calculate the value of goodwill as per the Capitalization method:
CS Executive · Corporate and Management Accounting · PYQS · June 2023
The total capital employed in the firm is ₹ 15,00,000. The Normal Rate of return is 12% and the profit for the year is ₹ 1,50,000. Calculate the value of goodwill as per the Capitalization method:
Answer & Explanation:
Correct Answer: Option (D)
Official answer key: (D).
Topics: Valuation of Goodwill
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