Ayub and Amit are partners in a firm and they admit Jaspal into partnership w. e. f. 1st April, 2018. They agreed to value goodwill at 3 years purchase of Super Profit Method for which they decided to average profit of last 5 years. The profit for the last 5 years were:
The firm has total assets of Rs. 20,00,000 and Outside Liabilities of Rs 5,00,000 as on that date. Normal Rate of Return in similar business is 10%. Calculate value of goodwill.
