A business has earned average profits of Rs 1,00,000 during the last few years and the normal rate of return in a similar type of business is 10%. Ascertain the value of goodwill by capitalization of average profit method. Given that the value of net asset of the business is Rs 8,20,000.

A business has earned average profits of Rs 1,00,000 during the last f

1.	A business has earned average profits of Rs 1,00,000 during the last few years and the normal rate of return in a similar type of business is 10%. Ascertain the value of goodwill by capitalization of average profit method. Given that the value of net asset of the business is Rs 8,20,000.
Answer» A business has earned average profits of Rs 1,00,000 during the last few years and the normal rate of return in a similar type of business is 10%. Ascertain the value of goodwill by capitalization of average profit method. Given that the value of net asset of the business is Rs 8,20,000.

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A business has earned average profits of Rs 1,00,000 during the last few years and the normal rate of return in a similar type of business is 10%. Ascertain the value of goodwill by capitalization of average profit method. Given that the value of net asset of the business is Rs 8,20,000.

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