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Accountancy > Accounting for Partnership Firms > Valuation Of Goodwill
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Question 1
From the following information, calculate the value of goodwill of the firm: (i) On the basis of capitalisation of super profits, and (ii) On the basis of capitalisation of average profits. Average profit for the last four years: ₹20,00,000 Capital Employed: ₹25,00,000 Normal Rate of Return: 20% Net Assets of the business: ₹25,00,000
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