A partnership firm has decided to value its goodwill for the purpose of setting a retiring Partner. The profit of that firm for the last four years were as follows:
2015 : Rs.20,000; 2016 : Rs.25,000; 2017; Rs.24,000 and 2018: Rs.23,000
The business was looked after by a partner. No remuneration was paid to him. The fair remuneration of the partner valued at comes to Rs. 3,000 per annum.
Find out the value of goodwill, if it is valued on the basis of three years purchase of the average profit of the last four years.

For the purpose of admitting a new partner, a firm has decided to value its good will at 3 years purchase of the average profit of the last 4 years using weighted average method profits of the past 4 years and the respective weights are as follows.

Compute the value of goodwill

From the following information, calculate the value of goodwill based on 3 years purchase of Super profit
(i) Capital employed: 1,00,000
(ii) Normal rate of return: 10%
(iii)Average profit of the business: 42,000

Calculate the value of goodwill at 5 years purchase of super profit from the following information
(a) Capital employed: Rs. 60,000
(b) Normal rate of profit: 20%
(c) Net profit for 5 years
2014:Rs.1,00,000, 2015: Rs.50,000 2016: Rs.70,000; 2017: Rs.54,000 and 2018: Rs. 10,000
(d) Fair remuneration to the partners 3,600 per annum

From the following information, find out the value of goodwill by capitalisation method: 
(a) Average profit = Rs. 60,000
(b) Normal rate of return = 10%
(c) Capital employed = Rs. 5,60,000