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Commerce · Q1148

Accounting

Graduate and Post Graduate · Commerce · question 1148

Q1148

Average profit of a firm is Rs. 9,000. Firm's capital is Rs. 60,000 and normal return on business is expected at 10%. The goodwill by capitalisation method will be:

A.
Rs. 30,000
Answer
B.
Rs. 20,000
C.
Rs. 25,000
D.
Rs. 40,000

Answer: Option A

Solution

Answer: Option A
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