From the following information, calculate value of goodwill of the firm:
(i) At three years purchase of Average Profit.
(ii) At three years purchase of Super Profit.
(iii) On the basis of capitalisation of Super Profit.
(iv) On the basis of capitalisation of Average Profit.
Information:
(a) Average Capital Employed is Rs.6,00,000.
(b) Net profit/(Loss) of the firm for the last three years ended are:
31stMarch,2018 - Rs.2,00,000, 31stMarch,2017 - Rs.1,80,000 and 31stMarch,2016 - Rs.1,60,000
(c) Normal rate of Return in similar business is 10 .
(d) Remuneration of Rs1,00,000 to partners is to be taken as charge against profit.
(e) Assets of the firm (excluding goodwill, fictitious assets and non-trade investments) is Rs.7,00,000 whereas Partner's capital is Rs. 6,00,000 and outside Liabilities Rs.1,00,000.