Is there anything to do with total capital of the firm ?
Q. The total capital of the firm of Saurabh, Mohit and Nikhil was Rs. 1,00,000. The net profits for the last 3 years were : 2013 - 14 Rs. 40,000; 2014 - 15 Rs. 46,000 and 2015 - 16 Rs. 52,000. There was an abnormal loss of Rs. 3,000 in 2014 -15. Goodwill of the film was to be valued at 2 years purchase of the average profits of last three years. Calculate the goodwill of the firm.
No, as it is required to calculate goodwill with avg profit method. If super profit method is to be found then it may be required