Rishi and Suman were partners in a firm. Their capitals were: Rishi Rs. 1,20,000 and Suman Rs. 80,000. The normal rate of return in similar business is 12%. The profits of the last four years were:

Year Rs.
2019 20 33,000
2020 21 22,000
2021 22 31,000
2022 23 34,000

Calculate goodwill of the firm based on: 

(i) Three years purchase of the last four years average profits. 

(ii) Capitalisation of super profit. 

Marks-3, CBSE: 2023-24/Zone-3/Set-1/Q-18

Answer :

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