A partnership firm earned net profits during the last three years ended 31st
Channel: Doubtnut
Date: 29/03/2020

A partnership firm earned net profits during the last three years ended 31st March, as follows: 2017 - Rs. 17,000, 2018 - Rs. 20,000, 2019 - Rs. 23,000. The capital investment in the firm throughout the above-mentioned period has been Rs. 80,000. Having regard to the risk involved, `15%` is considered to be a vair return on the capital. Calculate value of goodwill on the basis of two years\' purchase of average super profit earned during the above-mentioned three years.