Varuna and Karuna are partners for equal shares. They admit Lata into
Channel: Doubtnut
Date: 2020-03-29

Varuna and Karuna are partners for equal shares. They admit Lata into partnership for 1/4th share. It was agreed to value goodwill fo the firm at 4 years\' purchase fo super profit. Normal rate of return is `15%` of the capital employed. Average profit of the firm is Rs. 4,00,000. Balance Sheet of the firm as at 31st March, 2019 was as follows: Calculate the value of goodwill.