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22. Average profit of a firm during the last few years is 2,00,000 and the normal rate of return in a similar business is
22. Average profit of a firm during the last few years is 2,00,000 and the normal rate of return in a similar business is 10%. If the goodwill of the firm is 2,50,000 at 4 years' purchase of super profit, find the capital employed by the firm. [Ans.: Capital Employed-13,75,000.
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Financial Accounting A User Perspective
Authors: Robert E Hoskin, Maureen R Fizzell, Donald C Cherry
6th Canadian Edition
470676604, 978-0470676608
