On 1st April, 2022, the capital of the firm of Ashu and Madhav is ₹1,50,000. The normal rate of return on capital employed is 10%.

Average profits of the firm are ₹23,500. Calculate goodwill of the firm based on three years purchase of super profits.

Marks-3, CBSE:2022-23/Zone-1/Set-1/Q-20*

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