Devya purchased Joyti's business with effect from 1st April, 2019. Profits shown by Jyoti's business for the last three financial years were:
2016 - 17 : Rs. 1,00,000 (including an abnormal gain of Rs. 12,500).
2017 - 18 : Rs. 1,25,000 (after charging an abnormal loss of Rs. 25,000).
2018 - 19 : Rs. 1,12,500 (excluding Rs. 12,500 as insurance premium on firm's property - now to be insured).
Calculate the value of firm's goodwill on the basis of two years' purchase of the average profit of he last three years.

(Average Profit Method when Adjustments are Made). Aman purchased Bharatendu's business with effect from 1st April, 2019. It was agreed that the firm's goodwill will be valued at two years' purchase of average normal profit of the lst three years. Profits of Bharatendu's business for last three years ended 31st March, were: 2017 : Rs. 1,00,000 (including an abnormal gain of Rs. 10,000), 2018 : Rs. 1,10,000 (after charging an abnormal loss of Rs. 20,000), 2019 : Rs. 85,000 (including interest of Rs. 5,000 from non-trade investment). Calculate value of the firm's goodwill.

Dinesh and Mahesh are partners sharing profits and losses in the ratio of 3 : 2. They admit Ramesh into partnership for 1/4th share in profits. Ramesh brings in his share of goodwill in cash. Goodwill for this purpose shall be calculated at two years' purchase of the weighted average normal profit of past three years. Weights beling assigned to each year 2017 - 1, 2018 - 2, 2018 - 2 and 2019 - 3. Profits of the last three years were: 2017 - Profit Rs. 50,000 (including profits on sale of assets Rs. 5,000). 2018 - Loss Rs. 20,000 (including loss by fire Rs. 35,000). 2019 - Profit Rs. 70,000 (including insurance claim received Rs. 18,000 and interest on investments and dividend received Rs. 8,000). Calculate the value of goodwill. Also, calculate the goodwill brought n by Ramesh.

A firm earned profits of Rs. 80,000, Rs. 1,00,000, Rs. 1,20,000 and Rs. 1,80,000 during 2010-11, 2011-12, 2012-13 and 2013-14 respectively. The firm has capital investment of Rs. 5,00,000. A fair rate of return on investment is 15% p.a. Calculate goodwill of the firm based on three years' purchase of average super profits of last four years.

The total capital of the firm of Saurabh, Mohit and Nikhil was Rs. 1,00,000. The net profits for the last 3 years were : 2013-14 Rs. 40,000, 2014-15 Rsd. 46,000 and 2015-16 Rs. 52,000. There was an abnormal loss of Rs. 3,000 in 2014-15. Goodwill of the firm was to be valued at 2 years purchase of the average profits of the last three years. Calculate the goodwill of the firm.

Profit for the five years ending on 31st March, are as follows: Year 2015 -Rs. 4,00,000, year 2016 - Rs. 3,98,000, Year 2017 - Rs. 4,50,000, Year 2018 - Rs. 4,45,000 and Year 2019 - Rs. 5,00,000. Calculate goodwill of the firm on the basis of 4 years' purchase of 5 years' average Profit.

On 1st April, 2018, a firm had assets of Rs. 1,00,000 excluding stock of Rs. 20,000. The current liabilities were Rs. 10,000 and the balance consituted Partners' Capital Accounts. If the normal rate of return is 8% , the Goodwill of the firm is valued of Rs. 60,000 at four years' purchase of super profit, find the actual profits of the firm.

The following information relates to a partnership firm: (a) Sundry Assets of the firm Rs. 6,80,000. Outside Liabilities Rs. 60,000. (b) Profits and losses for the past years : Profit 2013 Rs. 50,000, Loss 2014 Rs. 10,000, Profit 2015 Rs. 1,64,000 and Profit 2016 Rs. 1,80,000. (c) The normal rate of return in a similar type of business is 12%. Calculate the value of goodwill on the basis of : (i) Three year's purchase of average profits. (ii) Three year's purchase of super profits. (iii) Capitalisation of average profits, and (iv) Capitalisation of super profits.

On 1st April, 2014 a firm had assets of Rs. 1,00,000 excluding stock of Rs. 20,000. Partners' Capital Accounts showed a balance of Rs. 60,000. The current liabilities were Rs. 10,000 and the balance constituted the reserve. If the normal rate of return is 8%, the 'Goodwill' of the firm is valued at Rs. 60,000 at four years purchase of super profit, find the average profit of the firm.

On April 1st 2015, an existing firm had assets of Rs. 5,00,000 including cash of Rs. 20,000. the firm had a General Reserve of Rs. 90,000, partner's capital accounts showed a balance of Rs. 3,80,000 and creditors amounted to Rs. 30,000. If the normal rate of return is 20% and the goodwill of the firm is valued at Rs. 64,000 at 4 year's purchase of super profit, find the average profits of the firm.

On 1st April, 2018 an existing firm had assets of Rs. 2,00,000 including cash of Rs. 4,000. Its creditors amounted to Rs. 10,000 on that date. The partner's capital accounts showed a balance of Rs. 1,60,000 while the general reserve amounted to Rs. 30,000. If the normal rate of return is 15% and the goodwill of the firm is valued at Rs. 36,000 at 3 year's purchase of super profit, find the average profits of the firm.