# From the following particulars, compute the value of goodwill as per annuity method:

From the following particulars, compute the value of goodwill as per annuity method:

i.Capital employed: Rs.15,00,000

ii.Normal rate of return: 10%

iii.Present value of Rs.1 for 5 years at 10%: Rs.3.78

ivNormal profit for 5 years:

2005:Rs. 1,50,000; 2006; Rs.1,60,000;

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Order Paper Now2007: Rs.1,70,000; 2008: Rs.1,80,000;

2009: Rs.1,90,000

Non-recurring income: Rs.8,000

Non-recurring expenses: Rs.5,000