Target Exam

CUET

Subject

-- Accountancy Part A

Chapter

Accounting for Partnership

Question:

Determine the value of firm's goodwill by capitalization of the super profit method if the average profits are Rs 1,00,000, super profits are Rs 18,000 and the normal rate of return is 10%.

Options:

Rs 10,00,000

Rs 5,00,000

Rs 1,80,000

Rs 88,000

Correct Answer:

Rs 1,80,000

Explanation:

The correct answer is Option (3) → Rs 1,80,000