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Ideal Marketing earned an average profit of 4 00 000 during the last five years Normal rate of retur......

  • Published on: 09-Jan-21
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Accountancy ( 12th) Goodwill Nature and Valuation Add to Study Deck
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Ideal Marketing earned an average profit of 4,00,000 during the last five years. Normal rate of return on capital employed is 10%. Balance Sheet of the firm as at 31st March, 2019 was as follows:

Calculate the value of goodwill, if it is valued at three years' purchase of Super Profits

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By: NIHARIKA WALIA
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