Capital empolyed in a business is ₹ 1,50,000. Profits are ₹ 50,000 and the normal rate of profit is 20%. The amount of goodwill as per capitalisation method will be:
A. ₹ 2,00,000
B. ₹ 1,50,000
C. ₹ 3,00,000
D. ₹ 1,00,000
Answer:D
Capital empolyed in a business is ₹ 1,50,000. Profits are ₹ 50,000 and the normal rate of profit is 20%. The amount of goodwill as per capitalisation method will be:
A. ₹ 2,00,000 B. ₹ 1,50,000 C. ₹ 3,00,000 D. ₹ 1,00,000