The profit and losses of a firm for the last four years were as follows:
2015: Rs.20,000; 2016; Rs. 25,000;
2017; Rs.3,000(loss) 2018; Rs.18,000
You are required to calculate the amount of goodwill on the basis of 5 years purchase of average profit of the last 4 years.

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.

From the following information relating to Arul enterprises, calculate the value of goodwill on the basis of 2 years purchase of the average profits of 3 years.
(a) Profits for the years ending 31st December 2016, 2017, and 2018 were Rs. 23,000 Rs.22,000 and Rs. 25,000 respectively.
(b) A non-recurring income of Rs. 2,500 is included in the profits of the year 2016.
(c) The closing stock of the year 2017 was overvalued by Rs. 5,000.

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, compute the value of goodwill as per annuity method:
(a) Capital employed: Rs.1,00,000
(b) Normal rate of return: 15%
(c) Profit of the years 2016, 2017 and 2018 were Rs.6,000, Rs.8,000 and Rs.20,000 respectively
(d) The present value of annuity of n for 3 years at 10% is 2.4868

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

Capital investment is Rs. 5,00,000, firms profit Rs. 1,50,000. Assuring that Normal of Rate of return , is 20% Calculate the Good will
(i) Capitalization method
(ii) super profit method if the Goodwill is valued @ 2 years purchase.

Calculate the value of Goodwill of the firm of 2 partners.
a) At the 3 years purchase of average profit.
b) At 3 years purchase of super profits.
c) In the basis of capitalization of super profits.
d) In the basis of capitalization of Average profits.
i) Average capital employed Rs. 7,00,000.
ii) Net trading result of the firm 2014 - Rs. 1,47,600;
2015 loss Rs. 1,48,100; profit for 2016 - Rs. 4,48,700.
iii) Rate of interest on capital @ 18%
iv) Remuneration Rs. 500/- per month