Capital employed in a business is Rs. 1,50,000. Profits are Rs. 50,000 and the normal rate of profit is 20%. The amount of goodwill by capitalisation method will be:
A. Rs. 1,00,000
B. Rs. 1,50,000
C. Rs. 2,00,000
D. Rs. 3,00,000
Answer: Option A
This Question Belongs to Commerce >> Accounting
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