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Commerce · Q890

Accounting

Graduate and Post Graduate · Commerce · question 890

Q890

If the value of net-assets employed be Rs. 25,00,000. Average profit for the preceeding three years be Rs. 3,00,000 and the normal rate of return be 10%, the value of Goodwill by capitalization method will be:

A.
Rs. 15,00,000
B.
Rs. 5,00,000
Answer
C.
Rs. 22,00,000
D.
Rs. 2,50,000

Answer: Option B

Solution

Answer: Option B
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