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Reassessment of Liabilities

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Question

From the following information, calculate value of goodwill of the firm by applying Capitalisation Method: Total Capital of the firm ₹ 16,00,000.
Normal rate of return 10%. Profit for the year ₹ 2,00,000.

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Solution

Total Capital = Rs 16,00,000

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Q. From the following information, calculate value of goodwill of the firm by applying Capitalisation Method. Total capital of the firm is Rs.

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