The total value of assets and liabilities of a firm are respectively as ₹24,00,000 and ₹10,00,000 and its average profit is ₹3,50,000. If the value of goodwill of the firm is calculated as ₹11,00,000, the normal rate of
CS Executive · Corporate and Management Accounting · PYQS · December 2022
The total value of assets and liabilities of a firm are respectively as ₹24,00,000 and ₹10,00,000 and its average profit is ₹3,50,000. If the value of goodwill of the firm is calculated as ₹11,00,000, the normal rate of return considered for the calculation is:
Answer & Explanation:
Correct Answer: Option (B)
Official answer key: (B).
Topics: Accounting for Intangibles
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