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Commerce · Q2217

Accounting

Graduate and Post Graduate · Commerce · question 2217

Q2217

X and Y made a profit of Rs. 5,000 and invested Rs. 25,000 as capital in the firm. The expected average rate of return on capital is 15%. If it is valued at three year purchase then amount of goodwill will be

A.
Rs. 7,500
B.
Rs. 3,750
Answer
C.
Rs. 15,000
D.
Rs. 9,000

Answer: Option B

Solution

Answer: Option B
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