12th Class
Accountancy
Goodwill
Question Bank
MCQs - Goodwill : Nature And Valuation
question_answer
Average Profit earned by a firm is Rs.1,00,000 which includes undervaluation of stock of Rs.40,000 on an average basis. The capital invested in the business is Rs.6,30,000 and the normal rate of return is 5%. Goodwill of the firm on the basis of 5 times of super profit will be: