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.