Question: Answer please. (Calculation of goodwill - Super Profit Method ). A partnership firm earned net profits during the last four years as under :- Year

Answer please. (Calculation of goodwill - Super Profit Method ). A

Answer please.

(Calculation of goodwill - Super Profit Method ). A partnership firm earned net profits during the last four years as under :- Year Profits ($) 1 20,000 II 15,000 III 25,000 IV 10,000 The capital investment in the firm throughout the above mentioned period has been $1,00,000. Having regard to the risk involved, 15% is considered to be a fair return on the capital invested. Calculate the value of Goodwill on the basis of 3 years' purchase of super profits

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