Question No 11 of TS Grewal (CBSE)
Atul and Bipul had a firm in which they had invested Rs. 50,000. On an average, the profits were Rs. 16,000. The normal rate of return in the industry is 15%. Goodwill is to be valued at four years’ purchase of profits in excess of profits @15% on the money invested. Calculate the value of goodwill.
Solution No 11 of TS Grewal (CBSE)