CA CPT June 2015 Question Paper Fundamentals of Accounting for online practice
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Question : 49 of 60
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Profits & Losses of Mr. Rathore were-
2011-12 4,00,000 Profit
2012-13 3,60,000 Profit
2013-14 60,000 Loss
2014-15 5,00,000 Profit
Capital employed is Rs. 15,00,000. Market rate of interest on investment is 10%. Rate of risk return on capital invested is 2%. Remuneration of alternative employment of the proprietor if not engaged in business is Rs. 60,000 p.a. Calculate the value of goodwill at 5 years purchases of super profits on the basis of average profit of the last 4 years.
2011-12 4,00,000 Profit
2012-13 3,60,000 Profit
2013-14 60,000 Loss
2014-15 5,00,000 Profit
Capital employed is Rs. 15,00,000. Market rate of interest on investment is 10%. Rate of risk return on capital invested is 2%. Remuneration of alternative employment of the proprietor if not engaged in business is Rs. 60,000 p.a. Calculate the value of goodwill at 5 years purchases of super profits on the basis of average profit of the last 4 years.
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