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mediumMCQCUET Accountancy 2025 29 May Shift 22026Accountancy
1 mark

The goodwill based on capitalization of average profit method is valued at Rs 1,80,000. If Net Assets are Rs 8,20,000 then find the capitalized value of average profits.

  1. A
    Rs 1,80,000
  2. B
    Rs 8,20,000
  3. C
    Rs 10,00,000
  4. D
    Rs 6,40,000

Solution & Step-by-step Explanation

Under the Capitalization of Average Profit Method:

Substituting the given values:

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The goodwill based on capitalization of average profit method is valued at Rs 1,80,000. If Net Assets are Rs 8,20,000 then find the capitalized value of average profits.
A
Rs 1,80,000
B
Rs 8,20,000
C
Rs 10,00,000
D
Rs 6,40,000

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