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Commerce · Q1326

Accounting

Graduate and Post Graduate · Commerce · question 1326

Q1326

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 by capitalisation method will be:

A.
Rs. 1,00,000
Answer
B.
Rs. 1,50,000
C.
Rs. 2,00,000
D.
Rs. 3,00,000

Answer: Option A

Solution

Answer: Option A
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