A firm earns ?1,00,000. The normal rate of return is 10%. The assets of the companyamounted to ?11,00,000 and liabilities to ?1,00,000. Value of goodwill by the capitalisation ofaverage actual profit will be
A) Rs 200000
B) Rs 10000
C) Rs 5000
D) Rs 100000
Correct Answer:
Verified
Q3: The excess amount which the firm can
Q4: A firm's goodwill is not affected by
A)Location
Q5: Weighted average method of calculating goodwill is
Q6: Under the capitalisation method, the formula for
Q7: The total capital employed in the company
Q9: When there is a change in the
Q10: Goodwill is nothing more than probability that
Q11: Goodwill is to be calculated at one
Q12: When there is no Goodwill Account in
Q13: The amount of goodwill is paid by
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