Question: Capital employed in a business is Rs. 1,50,000. Profits are Rs. 50,000 and the normal rate of profit is 20%. The amount of goodwill
Capital employed in a business is Rs. 1,50,000. Profits are Rs. 50,000 and the normal rate of profit is 20%. The amount of goodwill as per Capitalisation Method would be: A B C D Rs. 1,00,000 Rs. 1,50,000 Rs. 2,00,000 Rs. 3,00,000
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Correct option is A Capitalization method of valuing goodwillUnder this method ... View full answer
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