Average profit \(=\frac{Total\ profit}{Number\ of\ years}\)
\(=\frac{30,000+40,000+50,000+45,000}{3}\)
\(\frac{1,62,000}{4}\) = Rs. 40,500
Normal profit = Capital employed \(\times\) Normal rate of return
= 3,00,000 \(\times\) \(\frac{10}{100}\) = Rs. 30,000
Super profit = Average profit - Normal profit
= 40,500 - 30,000 = Rs. 10,500
Goodwill = \(\frac{super\ profit}{Normal\ rate\ of\ return}\)\(\times\) 100
= \(\frac{10,500}{10}\times100\) = Rs. 1,05,000

Super profit = Average profit - Normal profit
= 14,000 - 4,000 = Rs. 10,000
Goodwill = Super profit \(\times\) Value of annuity
= 14,000 \(\times\) 3.352
Goodwill = Rs. 33,520

Goodwill   = Super profit \(\times\) Number of years of purchase
Super profit = Average profit - Normal profit
Normal profit = Capital employed \(\times\) Normal rate of return
Capital employed = Fixed asset + Current assets - Current liabilities
 5,00,000 - 2,00,000 = Rs. 3,00,000
Normal profit = 3,00,000 x 12.5%
= Rs. 37,500
Super profit  = 60,000 - 37,500 = Rs. 22,500
Goodwill  = 22,500 \(\times\) 2
= Rs. 45,000

Generally, the following factors determine the value of goodwill of a partnership firm:
(i) Profitability of the firm: A firm earning higher profits and having potential to generate higher profits in future will have higher value of good will.
(ii) Good quality of goods or services offered: If a firm enjoys good reputation among the customers and general public for the good quality of its products or services, the value of goodwill for the firm will be high.
(iii) Tenure of the business enterprise: A firm which has carried on business for several years will have higher reputation among its customers as it is better known to the customers.
(iv) Efficiency of management: A firm having efficient management will earn more profits and the value of its goodwill will be higher compared to a firm with less efficient managerial personnel.
(v) Degree of competition: In the case of business enterprises having no competition or negligible competition, the value of goodwill will be high
(vi) Other factors: There are other factors which add to the value of goodwill of a business such as popularity of the proprietor, impressive advertisements and publicity, good relations with customers, etc.

Calculation of adjusted profit

Particulars	2016 Rs.	2017 Rs.	2018 Rs.
Profit	25,000	23,000	26,000
Less: Non -recurring income	2,500	-	-
	22,500	23,000	26,000
Add: Stock destroyed by fire (abnormal loss)	-	3,500	-
Profit after adjustments	1,30,000	1,20,000	2,30,000

Average profit \(=\frac{Total\ profit}{Number\ of\ years}\)
\(=\frac{22,000+26,000+26,000}{3}\)
\(=\frac{75,000}{3}\) = Rs. 25,000

	Rs.
Average profit before adjusting insurance premium payable in future	25,000
Less: Insurance premium payable in future	250
Average profit	24,750

Goodwill = Average profit \(\times\) Number of years of purchase
= 24,750 \(\times\) 2 = 49,500
Goodwill = Rs. 49,500

Average profit = \(\frac { Total\ profit }{ Number\ of\ year } \)
=\(\frac { 62,000+61,000+63,000 }{ 3 } \)
= \(\frac { 1,86,000 }{ 3 } \)
= Rs. 62,000
Normal profit = Capital employed \(\times\) Normal rate of return
= 4,00,000 \(\times\) 10%
= Rs. 40,000
Super profit = Average profit - Normal profit
= 62,000 – 40,000
= Rs. 22,000
Goodwill = \(\frac { Super\ profit }{ Normal\ rate\ of\ return } \) \(\times\)100
= \(\frac { 22,000 }{ 10 } \) \(\times\) 100
= Rs. 2,20,000

Average profit = \(\frac { Total\ profit }{ Number\ of\ year } \)
= \(\frac { 13,000+15,000+17,000 }{ 3 } \)
= \(\frac { 45,000 }{ 3 } \)
= Rs. 15,000
Normal profit = Capital employed \(\times\) Normal rate of return
= 50,000 × 10%
= Rs. 5,000
Super profit = Average profit - Normal profit
= 15,000 - 5,000
= Rs. 10,000
Goodwill = Super profit \(\times\) Value of annuity
= 10,000 \(\times\) 2.4868 = Rs. 24,868

Average profit = \(\frac { Total\ profit }{ Number\ of\ year } \)
Average profit = \(\frac { 30,000+32,000+35,000+37,000+40,000 }{ 5 } \)
Average profit = \(\frac { 1,74,000 }{ 5 } \)

Particulars	Rs.
Average profit before fair remuneration to the partners	34,800
Less: Fair remuneration to the partners	2,800
Average profit	32,000

Normal profit = Capital employed \(\times\) Normal rate of return
= 1,20,000 × 20%
= Rs. 24,000
Super profit = Average profit - Normal profit
= 32,000 – 24,000
= Rs. 8,000
Goodwill = Super profit \(\times\) Number of years of purchase
= 8,000 \(\times\) 5
= Rs. 40,000

Normal profit = Capital employed \(\times\) Normal rate of return
= 2,00,000 \(\times\) 15% = Rs. 30,000
Super profit = Average profit - Normal profit
= 42,000 - 30,000
= Rs. 12,000
Goodwill = Super profit \(\times\) Number of years of purchase
= 12,000 \(\times\) 3
= Rs. 36,000