A partnership firm earned net profits during the last 3 years ended 31st March as follows:
2016-17,000 2017-20,000 2018-23,000
The capital investment in the firm throughout the above- mentioned period has been ?80,000. having regard to the risk involved , 15% is considered to be a fair return on the capital.
Calculate value of goodwill on the basis of 2 years purchase of average super profit during the above- mentioned 3 years.