Find out the value of goodwill by capitalising super profits:
A. Normal Rate of Return 10%
B. Profits for the last four years are ` 30,000, ` 40,000, ` 50,000 and ` 45,000.
C. A non-recurring income of ` 3,000 is included in the above mentioned profit of ` 30,000.
D. Average capital employed is ` 3,00,000.
Answer:A
Find out the value of goodwill by capitalising super profits:
A. Normal Rate of Return 10% B. Profits for the last four years are ` 30,000, ` 40,000, ` 50,000 and ` 45,000. C. A non-recurring income of ` 3,000 is included in the above mentioned profit of ` 30,000. D. Average capital employed is ` 3,00,000.