Average profits of a firm during the last few years are Rs. 80,000 and the normal rate of return in a similar business is 10%. If the goodwill of the firm is Rs. 1,00,000 at 4 years’ purchase of super profit, find the capital employed by the firm.
Marks-3, CBSE:2018-19/Main/02/Q-7
Answer :
Goodwill Solution-11