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If average profit is two lakh rupees and normal profit is one lakh twenty thousand rupees and purchase years are three then what is goodwill?

Answer and explanation

Correct answer: Rupees 240000

Super profit is rupees 80000 and multiplying by three gives goodwill of rupees 240000. Find super profit before applying purchase years.

Related tags

GoodwillNumericalSuper-ProfitPurchase-YearsPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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