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%. |
Rs 10,00,000 Rs 5,00,000 Rs 1,80,000 Rs 88,000 |
Rs 1,80,000 |
The correct answer is Option (3) → Rs 1,80,000 |