question_answer

Average profit of a firm during the last few years is Rs.1,50,000. In similar business, the normal rate of return is 10% of the capital employed. Calculate the value of goodwill by capitalisation of super profit method if super profits of the firm are Rs.50,000. Goodwill of the firm will be:

A) 4,50,000

B) 5,00,000

C) 5,50,000

D) 6,00,000