Abha and Sara were partners in a firm. Their capitals were : Abha ₹3,00,000 and Sara ₹2,00,000. The normal rate of return in similar business is 10%. The profits of the firm of Abha and Sara for the last three years were:
2021-22 | ₹60,000 |
2022-23 | ₹90,000 |
And 2023-24 | ₹1,20,000 |
Calculate goodwill of the firm on the following basis:
- Four years purchase of the average profits for the last three years.
- Capitalisation of super-profits.
Marks-3, CBSE: 2024-25/Zone-5/Set-1/Q-18(a)
Answer :
