Pleasee solve this accountancy question

Dear Student, 
  • Average annual profit = (300000+400000+500000)/3 = 4,00,000 
  • Average annual profit after partner salary = 4,00,000- 80,000 = 320000
  • Normal profit on capital employed = capital employed ×normal rate of return/100
  • = 1000000×15/100 = 150000
  • Super Profit = Actual Average profit- Normal profit= 320000- 150000= 170000
  • Goodwill = super profit × no. of year's purchase= 170000 ×2 = 340000

Regards
 

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