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Average profit of GS & Co. is Rs. 50,000...

Average profit of GS & Co. is Rs. 50,000 per year. Average capital employed in the business is Rs. 3,00,000. if the normal rate of return on capital employed is `10%`, calculate goodwill of the firm by:
(i) Super Profit Method at three years' purchase, and
(ii) Capitalisation of Super Profit Method.

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The correct Answer is:
(i) Rs. 60,000; (ii) Rs. 2,00,000.
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