Practicing Success
Average profit of a partnership firm is ₹50000 per year. Average capital employed in the business is ₹300000. If the normal rate of return on capital employed is 10%. Calculate goodwill of the firm by the capitalisation of super profit method? |
₹20000 ₹100000 ₹200000 ₹10000 |
₹200000 |
Normal profit = 300000*10/100= ₹30000 |