Question
Gupta and Bose had a firm in which they had invested Rs. 50, 000. On a average, the profits were Rs. 16,000. The normal
Gupta and Bose had a firm in which they had invested Rs. 50, 000. On a average, the profits were Rs. 16,000. The normal rate in the industry is 15%. Goodwill is to be valued at four years purchase of profits in excess of profits @15% on the money invested. Find the value of the goodwill.
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Financial and Managerial Accounting the basis for business decisions
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