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Q39.Form the following particulars, calculate value of goodwill of a firm by applying Capitalisation of Average Profit Method:
i Profits of last five consecutive years ending 31st March are: 2019 − 54,000; 2018 − 42,000; 2017 − 39,000; 2016 − 67,000 and 2015 − 59,000.
ii Capitalisation rate 20%.
iii Net assets of the firm 2,00,000.
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