The profits and losses for the last years are: 2001-02 Losses Rs. 10,000; 2002-03 Losses Rs....

 

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The profits and losses for the last years are: 2001-02 Losses Rs. 10,000; 2002-03 Losses Rs. 2,500; 2003-04 Profits Rs. 98,000 and 2004-05 Profits Rs. 76,000. The average capital employed in the business is Rs. 2,00,000. The rate of interest expected from capital invested is 12%. The remuneration of partners is estimated to be Rs. 1,000 per month. Calculate the value of goodwill oh the basis of two yearspurchase of super profits based on the average of four years. A Rs. 9,000 B C D Rs.8,750 Rs. 8,500 Rs. 8,250 The profits and losses for the last years are: 2001-02 Losses Rs. 10,000; 2002-03 Losses Rs. 2,500; 2003-04 Profits Rs. 98,000 and 2004-05 Profits Rs. 76,000. The average capital employed in the business is Rs. 2,00,000. The rate of interest expected from capital invested is 12%. The remuneration of partners is estimated to be Rs. 1,000 per month. Calculate the value of goodwill oh the basis of two yearspurchase of super profits based on the average of four years. A Rs. 9,000 B C D Rs.8,750 Rs. 8,500 Rs. 8,250

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B Rs 8750 Steps to find 2 years purchase of super profits based on 4 years average 1 Find normal pro... View the full answer