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Match the following items: (i) If goodwill is valued at ₹ 1,20,000 at 4 years purchase of super profit; normal return is 10% and average profits are ₹ 50,000, capital employed will be

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Question

Match the following items:

(i) If goodwill is valued at ₹ 1,20,000 at 4 years purchase of super profit; normal return is 10% and average profits are ₹ 50,000, capital employed will be (a) ₹ 8,00,000
    (b) ₹ 2,00,000
    (c) ₹ 5,00,000
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Solution

(i) If goodwill is valued at ₹ 1,20,000 at 4 years purchase of super profit; normal return is 10% and average profits are ₹ 50,000, capital employed will be (b) ₹ 2,00,000
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Chapter 2: Change in Profit Sharing Ratio among the Existing Partners - OBJECTIVE TYPE QUESTIONS [Page 2.100]

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D. K. Goel Accountancy Part A Volume 1 and 2 [English] Class 12
Chapter 2 Change in Profit Sharing Ratio among the Existing Partners
OBJECTIVE TYPE QUESTIONS | Q (D) 6. | Page 2.100
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