The following information relates to a partnership firm:  (a) Sundry Assets of the firm R
Channel: Doubtnut
Date: 2020-04-26

The following information relates to a partnership firm:  (a) Sundry Assets of the firm Rs. 6,80,000. Outside Liabilities Rs. 60,000.  (b) Profits and losses for the past years : Profit 2013 Rs. 50,000, Loss 2014 Rs. 10,000, Profit 2015 Rs. 1,64,000 and Profit 2016 Rs. 1,80,000.  (c) The normal rate of return in a similar type of business is 12%.  Calculate the value of goodwill on the basis of :  (i) Three year's purchase of average profits.  (ii) Three year's purchase of super profits.  (iii) Capitalisation of average profits, and  (iv) Capitalisation of super profits.