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Or (b) The following particulars are available in respect of the business carried on by David. (1) Capital invested - Rs. 50,000 (ii) Trading results:
Or (b) The following particulars are available in respect of the business carried on by David. (1) Capital invested - Rs. 50,000 (ii) Trading results: Rs. 2010 Profit 12,200 2011 Profit 15,000 2012 Loss 2,000 2013 Profit 21,000 Page 11 Code No. : 10094 E (iii) Market rate of interest on investment 8%. (iv) Rate of risk return on capital invested in business 2%. (v) Remuneration from alternative employment of the proprietor (if not engaged in business) - Rs. 3,600 p.a. Compute the value of goodwill of the business on the basis of 3 years purchase of super profit taking average of the last four years
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