A firm earns ₹1,00,000. The normal rate of return is 10%. The assets of the company amounted to ₹11,00,000 and liabilities to ₹1,00,000. Value of goodwill by the capitalization of average actual profit will be

🎲 Try a Random Question  |  Total Questions in Quiz: 46  |  🧠 Study this quiz with Flashcards
This question is part of a full practice quiz:
Financial Accounting Practice Test: Final Accounts Valuation of Goodwill — practice the complete quiz, review flashcards, or try a random question.


A firm earns ₹1,00,000. The normal rate of return is 10%. The assets of the company amounted to ₹11,00,000 and liabilities to ₹1,00,000. Value of goodwill by the capitalization of average actual profit will be






ADVERTISEMENT