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Average profit of the firm is Rs. 2,00,000. Total assets of the firm are Rs. 15,00,000 whereas Partners Capital is Rs. 12,00,000. If normal rate of return in a similar business is 10% of the capital employed, what is the value of goodwill by Capitalisation of Super Profit?

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Super profit

Super profit = Average profit - Normal profit

Super profit = 2,00,000 - 1,20,000 = 80,000

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