The profits and losses for the last 4 years are Losses Rs. 20,000; Losses Rs. 5,000;...

 

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The profits and losses for the last 4 years are Losses Rs. 20,000; Losses Rs. 5,000; Profits Rs. 1,96,000 & 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 from two years' purchase of super profits based on the average of four years is A B с D Rs. 18,000 Rs. 17,500 Rs. 17,000 Rs. 16.500 The profits and losses for the last 4 years are Losses Rs. 20,000; Losses Rs. 5,000; Profits Rs. 1,96,000 & 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 from two years' purchase of super profits based on the average of four years is A B с D Rs. 18,000 Rs. 17,500 Rs. 17,000 Rs. 16.500

Answer rating: 100% (QA)

Correct option is B Average Propit 196000 152000 200005000 4 Super Profit A... View the full answer