Average profits, Super profits and Capital employed of Z Ltd. are ₹7,80,000; ₹2,40,000; and ₹45,00,000 respectively. Normal rate of return is 12%. The Value of Goodwill on the basis of Capitalization of 'Super profits' w
CS Executive · Corporate and Management Accounting · PYQS · June 2022
Average profits, Super profits and Capital employed of Z Ltd. are ₹7,80,000; ₹2,40,000; and ₹45,00,000 respectively. Normal rate of return is 12%. The Value of Goodwill on the basis of Capitalization of 'Super profits' will be :
Answer & Explanation:
Correct Answer: Option (A)
Official answer key: (A).
Topics: Financial Management
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