The average net profits expected in the furute by abc firm, Ask an Expert

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The average net profits expected in the furute by ABC firm are 36,000per year. The average capital employed in the business by the firm is 2,00,000. The rate of return expecte from the capital invested in the class of business is 10%. The remuneration of the prtners is estimated to be 6,000/annum. Find out the value of goodwill on the basis of two years purchase of super profits.

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Category:- Accounting Basics
Reference No.:- M9962174

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