The average net profits expected in the future by ABC firm are Rs. 1,00,000 per year. The average capital employed in the business by the firm is 5,00,000. The rate of interest expected from capital invested in this class of business is 15%. The remuneration of the Partners is estimated to be Rs. 10,000 per annum. Find out the value of Goodwill on the basis of two year's purchase of super profits.

Explanation

Rs. 30,000