The profits and losses for the last years are: 1 year Losses Rs.20,000; 11 year Losses...

   

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The profits and losses for the last years are: 1 year Losses Rs.20,000; 11 year Losses Rs. 5,000; Ill year profits Rs.1,96,000 & IV year profits Rs. 1,52,000. The average capital employed in the business is Rs. 4,00,000. The rate of interest expected from capital invested is 12%. The remuneration of partners is estimated to be Rs, 2,000 per month. The value of goodwill by four years purchase of super profits based on the annuity of the four years. (Take discounting rate as 10%) is_ A Rs. 27,000 B C D Rs. 27,136 Rs. 27,336 Rs. 27,729 The profits and losses for the last years are: 1 year Losses Rs.20,000; 11 year Losses Rs. 5,000; Ill year profits Rs.1,96,000 & IV year profits Rs. 1,52,000. The average capital employed in the business is Rs. 4,00,000. The rate of interest expected from capital invested is 12%. The remuneration of partners is estimated to be Rs, 2,000 per month. The value of goodwill by four years purchase of super profits based on the annuity of the four years. (Take discounting rate as 10%) is_ A Rs. 27,000 B C D Rs. 27,136 Rs. 27,336 Rs. 27,729

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Answer is B Average capital employed 400000 400000 1960... View the full answer