Question No 31 of TS Grewal (CBSE)

A firm earns profit of Rs. 5,00,000. Normal Rate of return in a similar type of business is 10%. The value of total assets (excluding goodwill) and total outsiders Liabilities as on the date of goodwill are Rs. 55,00,000 and Rs. 14,00,000 respectively. Calculate value of goodwill according to Capitalization of Super Profit Method as well as Capitalization of Average Profit Method.

Solution No 31 of TS Grewal (CBSE)

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