The profits of the firm for 4 years will be 1st year RO 76000, 2nd year RO 84000, 3rd year RO 64000, 4th year RO 56000. The capital employed in the firm was RO 280000 and the normal rate of return will be 15%. Goodwill for 4 years purchase under super profit method will be O a. RO 56,000 O b. RO 42,000 O. RO 64,000 O d. RO 112,000

The profits of the firm for 4 years will be 1st year RO 76000, 2nd year RO 84000, 3rd year RO 64000, 4th year RO 56000. The capital employed in the firm was RO 280000 and the normal rate of return will be 15%. Goodwill for 4 years purchase under super profit method will be O a. RO 56,000 O b. RO 42,000 O. RO 64,000 O d. RO 112,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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