A firm has an average profit of ₹ 60,000 Rate of return on capital employed is 12.5% p.a. Total capital employed in the firm was ₹ 4,00,000. Goodwill on the basis of two years purchase of super profit is :
A. ₹ 20,000
B. ₹ 15,000
C. ₹ 10,000
D. None of these
Answer:A
A firm has an average profit of ₹ 60,000 Rate of return on capital employed is 12.5% p.a. Total capital employed in the firm was ₹ 4,00,000. Goodwill on the basis of two years purchase of super profit is :
A. ₹ 20,000 B. ₹ 15,000 C. ₹ 10,000 D. None of these