A partnership firm earned net profits during the last three years ended 31st March, as follows: 2016 – Rs. 17,000; 2017 – Rs. 20,000; 2018 – Rs. 23,000. The capital investment in the firm throughout the abovementioned period has been Rs. 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 two years purchase of average super profit earned during the above-mentioned three years.
